Trump tells Israel not to retaliate as Iran missiles push Brent past $96

Trump intervened directly to halt Israeli retaliation after Iran launched multiple missile strikes, pushing Brent crude above $96 and threatening a broader regional conflict that could close the Strait of Hormuz.

President Donald Trump told Israeli Prime Minister Benjamin Netanyahu not to retaliate after Iran fired several missile rounds at Israel on June 7, according to US media reports. Trump expressed displeasure over Israel's earlier airstrike on Beirut's southern suburbs, which prompted Iran to suspend peace negotiations with the US and launch retaliatory strikes.

"Everybody hates you now. Everybody hates Israel because of this," Trump told Netanyahu during what sources described as an expletive-laden phone call, according to Axios. A US official briefed on the conversation said Trump accused Netanyahu of being "crazy" and told him: "You'd be in prison if it weren't for me. I'm saving your a--." Trump later announced on Truth Social that "there will be no Troops going to Beirut" and claimed Hezbollah had agreed to stop attacks.

Brent crude jumped more than 5 percent to around $96 a barrel as Iran threatened to close the Strait of Hormuz, a chokepoint that handles about 21 percent of global oil trade. The semiofficial Tasnim news agency reported that Iran's negotiating team had suspended talks with the US after Israel escalated its military operations in Lebanon. Iran's Khatam al-Anbiya headquarters warned: "If they bomb Dahiyeh and Beirut, those who do not want to be harmed should leave the area."

The confrontation marks the most direct US-Iran military exchange since the war began in late February. US Central Command said Iran launched several ballistic missiles toward regional neighbors, though all failed to hit intended targets. Two Iranian missiles fired at Kuwait fell short, while three targeting Bahrain were intercepted by US and Bahrain air defenses. CENTCOM also shot down three Iranian attack drones and conducted self-defense strikes on an Iranian military ground control station on Qeshm Island. The last time US forces struck Iranian territory directly was in the opening weeks of the conflict, when the Strait of Hormuz was first shut down in March.

Oil markets price in a prolonged blockade

Brent crude's surge to $96 reflects mounting supply disruption risk. Iran had earlier threatened "full closure" of the Strait of Hormuz and the Bab el-Mandeb Strait if Israeli attacks on Lebanon continued. Despite the threats, 15 commercial vessels including four tankers passed through the Strait of Hormuz on Monday with IRGC coordination, according to Iranian claims. Oil prices have now risen more than 5 percent in a single session, with the risk premium embedded in options skew widening sharply as traders hedge against a sustained blockade.

The US has maintained a naval blockade against Iranian ports since April 13, with CENTCOM reporting it has disabled six commercial vessels and redirected 122 attempting to reach Iran. The blockade, combined with Iran's closure of the Strait of Hormuz, has sent global energy prices soaring and disrupted supply chains across Asia and Europe.

Iran's negotiating position hardens

Iranian Parliament Speaker Mohammad Bagher Ghalibaf warned that continued Israeli attacks in Lebanon would trigger a military response. "If these crimes continue, we will not only suspend the negotiation process, but we will also stand against the Zionist regime," Ghalibaf said, according to the state-owned Islamic Republic News Agency. He added that any agreement to end the war "will include a halt to attacks on all fronts, especially in Lebanon."

Trump told NBC News he was not informed of Iran's decision to suspend talks ahead of time but said "I think it's fine if they're done talking." He later claimed on Truth Social that talks were "continuing, at a rapid pace." The contradictory signals underscore the fragility of the ceasefire, which had appeared close to a deal just a week ago.

Netanyahu posted on X that Israel's stance "remains unchanged" and that the IDF "will continue to operate as planned in southern Lebanon." Despite Trump's claim of a de-escalation agreement, Israeli strikes continued Tuesday, with six people killed in the village of Marwaniyeh and two Lebanese soldiers wounded by an Israeli drone in Nabatieh.

The risk of a broader regional war remains elevated. If Israel defies Trump's directive and retaliates against Iran, the conflict could draw in Gulf states and further disrupt global energy markets. If Iran follows through on its Strait of Hormuz threat, Brent could test $100 for the first time since the war began.

This article is for informational purposes only and does not constitute investment advice.