Oil prices surge in response.
Following a briefing on the downing of a US drone – for which Iran has taken responsibility – US President Donald Trump has commented:
“Iran made a very big mistake!”
Iran made a very big mistake!
— Donald J. Trump (@realDonaldTrump) June 20, 2019
Iran claims the drone was shot down over their own territory. However, the debris was found in international waters, and the US has called the attack “unprovoked.”
In a statement, Iran spun the shooting down of the drone as a defensive move:
“The downing of the American drone was a clear message to America. … Our borders are Iran’s red line and we will react strongly against any aggression. Iran is not seeking war with any country, but we are fully prepared to defend Iran.”
This follows an attack on two oil tankers in the Strait of Hormuz, a key shipping lane for energy resources. Iran has denied responsibility for those attacks, while the US and some of their allies have blamed the theocratic authoritarian state.
Recently, reports had indicated that Trump has been urging his officials to tone down their rhetoric against Iran and push back against a march to war. We will see if that changes now.
Oil prices rise
Oil prices are up following the drone being shot down and Trump’s response.
As of 10:15 am Central Time, West Texas Intermediate is up 5.76% at $57.08.
Brent Crude is up 4.35% at $64.51.
And in good news for Canada, the Canadian Crude Index is up 8.59% to $40.08.
Spencer Fernando
Photo – YouTube
