By Adam Clark

Oil prices were rising early Wednesday after President Donald Trump appeared to suggest the possibility that U.S. military action would resume against Iran early Wednesday.

"Iran can't get their act together. They don't know how to sign a nonnuclear deal. They better get smart soon!," Trump posted, accompanied by an image of himself with the slogan "No More Mr. Nice Guy" on Truth Social.

Markets were weighing this prospect of a resumed U.S.-Iran conflict against the United Arab Emirates' exit from OPEC.

Brent crude futures, the international benchmark, were rising 3% to $107.57 a barrel, while West Texas Intermediate futures were climbing 3.7% to $103.62 a barrel.

Trump has told his aides to prepare for a prolonged blockade of Iran, The Wall Street Journal reported late Tuesday, citing U.S. officials.

However, Iranian officials continue to publicly insist that Washington must lower its demands before Tehran gives up its own blockade on the Strait of Hormuz, through which 20% of the world's oil normally passes.

Meanwhile, OPEC is scrambling to deal with the departure of the United Arab Emirates, the oil cartel's third-biggest producer. Withdrawing from OPEC will give the U.A.E. freedom to expand its output, which it has repeatedly requested permission to do.

The U.A.E. said it would also exit OPEC+, a group of major oil producers that includes Russia, and gradually increase production afterward. However, that might not come soon enough to avoid a worsening oil crunch.

"While...crude oil futures have dropped off their March highs, the physical supply squeeze for oil may be somewhat underappreciated by investors," wrote Adam Turnquist, chief technical strategist for LPL Financial, in a research note. "Early-year oversupply has helped absorb the immediate shock better than feared, while markets still face normalization that could take months."

Write to Adam Clark at adam.clark@barrons.com

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April 29, 2026 06:20 ET (10:20 GMT)

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