Trump's Threat to Iran Causes Global Oil Prices to Surge

Global oil prices have risen ahead of the deadline set by US President Donald Trump for Iran to accept American demands and agree to a ceasefire. On Tuesday (7 April) at 06:30 GMT (13:30 WIB), Brent crude oil prices increased by 1.5% to around $111.4 (approximately Rp1.95 million) per barrel, while West Texas Intermediate (WTI) rose 2.7% to $115.3 per barrel. Trump previously stated that if no agreement is reached by that deadline, US forces would launch extensive attacks on civilian targets in Iran. He also claimed that the US military is capable of “destroying” the entire country in one night. “The entire country could be destroyed in one night, and that could happen tomorrow night,” he told reporters. Trump set the deadline until Tuesday at 20:00 EDT (Wednesday 07:00 WIB) and warned that infrastructure such as bridges and power plants in Iran would be “destroyed” if no deal is reached. Meanwhile, the Israeli military has warned Iranian citizens not to use the national railway on Tuesday and to stay away from areas around the tracks. On Friday (3 April), an F-15 Strike Eagle fighter jet was shot down by Iran. Its pilot was successfully rescued by US military forces led by Navy SEAL Team Six. Civilian casualties continue to mount as the escalation of the conflict between the United States (US) and Iran shows no signs of abating, with attacks and counterattacks alternately striking residential areas. Based on the latest available tracking footage, those ships are near Oman after changing direction. Iran demands guarantees that it will not be attacked again in the future, as well as a halt to Israel’s attacks on its ally, Hezbollah, in southern Lebanon. Economist Yusuf Rendy Manilet from CORE warns of the risks to the state budget if fuel subsidies swell. The government has prepared a fiscal buffer of Rp420 trillion until 2026. According to him, Japan also needs to consider that option to obtain large quantities of supplies at lower prices. Donald Trump has issued a harsh ultimatum to Iran regarding the Strait of Hormuz. On the other hand, Asian countries are pursuing diplomatic routes to secure oil supplies. US crude oil prices have surged above $110 per barrel after Iran rejected the deadline set by Donald Trump for opening the Strait of Hormuz. Amid rising global tensions due to the Iran vs US and Israel war, the threats to Indonesia come not only from the economic side, such as the increase in global oil prices.