Oil Surges Past $120 as US-Iran Talks Stall — Trump Warns Tehran to ‘Get Smart Soon’
JUBA, South Sudan — Global oil prices surged past $120 per barrel on Wednesday as negotiations between the United States and Iran remain deadlocked, with President Donald Trump warning Tehran to “get smart soon” amid the widening crisis in the Middle East.
Brent crude jumped more than 6% on Wednesday to settle at multi-week highs, with analysts warning that the prolonged US naval blockade on Iranian oil shipments through the Strait of Hormuz could push prices higher. The strategically vital waterway — through which roughly one-fifth of the world’s petroleum passes — remains a flashpoint after Iranian forces seized two commercial ships in recent days.
$25 Billion and Counting
The cost of the US-Israel military campaign against Iran has now reached an estimated $25 billion, according to defense analysts. The conflict, now in its third month, has rattled global energy markets and raised fears of a prolonged supply crunch.
Iranian officials have threatened to close the Strait of Hormuz entirely if the US does not lift its blockade, while simultaneously offering to reopen the waterway in exchange for talks. President Trump dismissed the offer, posting on social media that the deal would be “one-sided” and urging Iran to “just give up.”
Global Shockwaves
The crisis is already being felt worldwide. The International Energy Agency has warned that sustained prices above $120 could trigger a global recession, hitting developing nations in Africa — including South Sudan — especially hard. Fuel prices across East Africa have risen sharply in recent weeks, compounding the economic strain on already vulnerable communities.
Earlier this week, South Sudan itself was thrust into its own tragedy when a Cessna aircraft crashed southwest of Juba, killing all 14 people on board. Bad weather and low visibility are suspected causes, the country’s civil aviation authority said.
Meanwhile, nearly eight million South Sudanese face acute hunger, according to a new UN-backed report — a crisis fueled by conflict, climate shocks, and the economic ripple effects of regional instability.
What’s Next?
Talks between the US and Iran are expected to remain stalled in the coming days. Oil markets remain highly volatile, and the Biden-Trump administration is reportedly weighing an extension of the naval blockade despite mounting domestic pressure over rising fuel costs. A US aircraft carrier is expected to depart the region soon, but no ceasefire deal appears imminent.
JubaGlobal will continue to monitor this developing story.
