The threat of military conflict between the United States and Iran is rising, threatening to shut the world's busiest seaway for oil exports and send crude prices higher, analysts told CNBC on Monday.
President Donald Trump on Sunday night warned Iranian President Hassan Rouhani on Twitter that his country would "SUFFER CONSEQUENCES THE LIKES OF WHICH FEW THROUGHOUT HISTORY HAVE EVER SUFFERED BEFORE" if Rouhani ever threatened the United States again.
@realDonaldTrump: To Iranian President Rouhani: NEVER, EVER THREATEN THE UNITED STATES AGAIN OR YOU WILL SUFFER CONSEQUENCES THE LIKES OF WHICH FEW THROUGHOUT HISTORY HAVE EVER SUFFERED BEFORE. WE ARE NO LONGER A COUNTRY THAT WILL STAND FOR YOUR DEMENTED WORDS OF VIOLENCE & DEATH. BE CAUTIOUS
Trump appeared to be responding to comments over the weekend from Rouhani, who said, "Iran's power is deterrent and we have no fight or war with anybody but the enemies must understand well that war with Iran is the mother of all wars," according to an English translation on the Iranian president's official website.
Oil prices jumped by about $1 per barrel on Monday following the back-and-forth, but ultimately pulled back to end the day roughly flat.
"I think the market's a little complacent," said Bob McNally, founder and president of energy consultancy The Rapidan Group. "Maybe they're thinking this is a repeat of North Korea. The president will tweet about fire and fury and before you know it, the president and President Rouhani will be in Geneva having a meeting and talking about a deal."