Oil Prices Rise, Trump Urges Iran to Give Up

WASHINGTON DC, WEDNESDAY - Due to the lack of signs of de-escalation in the Israel-Iran conflict, global oil prices have once again begun to rise. It is anticipated that this will impact the prices of various other goods. The situation is becoming increasingly tense as the United States threatens Iran to surrender immediately. This pressure has been criticized by Western countries.

As of Wednesday (18/6/2025) morning, the price of U.S. crude oil rose by 4.28 percent to 74.84 U.S. dollars per barrel. The global benchmark price, Brent, increased by 4.4 percent to 76.45 U.S. dollars. This brings the total increase in Brent prices in June 2025 to 16 percent.

Global oil prices are expected to remain high and contribute to inflation. In the United States, since Israel attacked Iran on Friday (13/6/2025), the prices of goods have already increased by 10 percent.

"This is not a conflict that will be resolved quickly. Economic observers suspect that this will drag on like the war between Ukraine and Russia," said Phil Flynn, an expert from Price Futures Group.

Meanwhile, Amos Hochstein, an energy expert, explained the reasons why prices will remain high and stagnant. The world already has ample reserves of crude oil. This situation has been in effect since the conflict between Russia and Ukraine erupted in 2022 and continued with the Hamas-Israel conflict in the Gaza Strip in 2023.

The cartel of oil-producing countries, OPEC, is also increasing production. "At least in the US, the forecast indicates there will be no price spike after this," Hochstein told CNBC.

The financial research firm, Barclays, stated that the rise in oil prices poses a risk of weakening currencies in Asian countries. The Thai baht, South Korean won, and Taiwanese dollar are the most affected.

The depreciation of this currency exchange rate has impacted the projected slowdown in development in Asian countries. The central bank of Taiwan has promptly intervened to balance interest rates to ensure that the economy in the region does not stall.

There are also concerns about the potential closure of the Strait of Hormuz, which connects the Persian Gulf with the Gulf of Oman. This waterway is where 20 percent of the world's oil and gas passes through. The Strait of Hormuz is managed by Iran and is one of the main sources of foreign exchange for the country.

The world was momentarily shocked by the incident of a collision between two tankers in the Strait of Hormuz on Tuesday (17/6/2025) evening. Both ships caught fire, but the vessels and their contents were successfully rescued. Bloomberg verified that the incident was purely an accident due to navigational error, not a result of the Iran-Israel conflict.

The situation in the Middle East is becoming increasingly tense due to threats from U.S. President Donald Trump. He stated that he does not desire a ceasefire between Iran and Israel. He seeks a permanent solution. Trump expressed this in a series of tweets on Truth Social.

"I have said many times, IRAN SHOULD NOT HAVE NUCLEAR WEAPONS. Everyone must evacuate Tehran immediately!" he tweeted.

"We know where the Ayatollah lives. We won't kill him, but our patience is wearing thin. Come on, surrender!" Trump tweeted again.

On the U.S. government aircraft, Air Force One, Trump stated that he is not interested in negotiating with Iran. "I do not want a ceasefire. I want the conflict to end. Period," he said.

In fact, on Monday morning, Trump's demeanor was calmer. He stated that he had received positive news from various countries representing Iran for dialogue. His attitude changed after he hastily left the Group of Seven (G7) summit in Canada on Monday evening.

Trump also clashed with the Director of the U.S. National Intelligence Agency, Tulsi Gabbard. Gabbard stated that there is no concrete evidence that Iran is developing nuclear weapons.

The American public is not enthusiastic about the prospect of the United States becoming involved in the Iran-Israel conflict. Several U.S. warships are located in the waters around Iran. However, their position is to defend Israel, not to attack Iran.

The decision regarding whether the United States will engage in war lies in the hands of Congress. However, Republican Senator Ted Cruz stated that Trump, as the President of the United States, has the right to bomb Fordow, a facility suspected of being a site for nuclear weapons production in the interior of Qom, Iran.

"The basis is the Constitution because the president is obliged to protect the security of the nation and the safety of troops in the field. The act of one specific bombing of a non-civilian facility does not require Congressional authorization," he said, as quoted by The Independent.

However, the president does not have the authority to declare that the United States will engage in war. Cruz explained that war is a situation of prolonged conflict. There is one or several countries that are labeled as enemies of the United States for an extended period. All of this must be discussed and approved by Congress.

The G7 leaders, except for the United States, are still holding a summit in Canada. Only German Chancellor Friedrich Merz supports Trump's desire to attack Iran on the grounds that the Iranian regime has long been terrorizing the world. The other G7 leaders, on the other hand, are voicing criticism.

"The only ones who can change the leader or regime of a country are its people. They must choose because the people are the true rulers," French President Emmanuel Macron was quoted as saying by the Washington Post.

He stated that history has repeatedly proven that any military intervention to replace a country's government always fails. For Macron, regime change through military means is a strategic mistake.

European Union diplomat Kaja Kallas stated that, based on the meeting of EU foreign ministers, everyone agreed that the necessary step is to de-escalate the conflict. The way to achieve this is through diplomacy.

Kallas emphasized that no one wants the conflict to escalate and result in more casualties, material losses, or hinder global development. The involvement of the United States only exacerbates the issues in the Middle East.

US Secretary of State Marco Rubio tried to calm the situation. "We emphasize that the US has no interest in getting involved further in this conflict," he said.

Rubio's statement received criticism because Trump clearly escalated the situation. If Trump only intends to engage as far as bombing Fodow, the impact will still exacerbate the conflict.

Egyptian Foreign Minister Badr Abdelatty called Iranian Foreign Minister Abbas Araghci and the U.S. Special Envoy for the Middle East Steve Witkoff. Egypt requested immediate efforts to de-escalate tensions.

Qatar's Foreign Ministry spokesperson, Majed Al-Ansari, stated that Doha has also contacted both conflicting countries and urged all parties to exercise restraint. Qatar is willing to mediate a resolution to the conflict for the benefit of everyone in the Middle East.

The Iranian Ambassador to Indonesia, Mohammad Boroujerdi, stated that Iran is in a state of self-defense. Israel, without any provocation, attacked Iran last Friday. Meanwhile, Iran was preparing to engage in the sixth round of nuclear negotiations with the United States in Oman.

"As long as Israel attacks, Iran will defend itself and respond proportionally," he said in Jakarta, Tuesday (17/6).

Meanwhile, in Israel, the government is implementing strict sensors. All journalists, including foreign journalists, are prohibited from publishing photos and videos of the impacts of the Iranian attacks. The ban was issued by National Security Minister Itamar Ben Gvir.

Ben Gvir, along with Finance Minister Bezalel Smotrich, are far-right politicians who are anti-Palestinian. They aim to fully occupy Palestine and establish Israeli supremacy in the Middle East.

Both political parties are an important coalition in the victory of Prime Minister Benjamin Netanyahu. Without fulfilling their far-right demands, Netanyahu's power could collapse.

"Anything celebrating Iran's attack is prohibited," he told the Times of Israel

In addition, showing the affected areas is dangerous for the country's safety. According to him, the enemy will be able to launch further precision attacks. (Reuters)