Crude oil prices rise after Trump calls on Iran to surrender

International oil prices rose more than 3% on Tuesday, amid fears of an escalation in the conflict between Iran and Israel. Furthermore, US President Donald Trump demanded Iran's unconditional surrender and threatened its Supreme Leader, Ayatollah Ali Khamenei.

Brent crude futures rose $3.19, or 4.35%, to $76.45 a barrel, marking their highest level since $75.87 on February 10. U.S. benchmark West Texas Intermediate (WTI) crude gained $3.07, or 4.28%, to $74.84, its highest price since $75.44 on January 23.

The price of Mexican crude oil for export rose $2.89, or 4.31%, to $69.90 a barrel, its highest price since January 28, when it closed at $70.69.

Prices continued to rise after the session closed, with WTI and Brent gaining 5% and 5.41% in electronic trading, while falling 0.26% and 0.21%, respectively, overnight.

Trump threatened Khamenei, calling him an "easy target," and warned the Iranian leader that American patience was running out. He then demanded Iran's unconditional surrender on his social media platform, Truth Social.

“We know where the so-called 'Supreme Leader' is hiding,” Trump said. “He's an easy target, but he's safe there. We're not going to take him out, at least not right now. But we don't want missiles fired at American civilians or soldiers.”

Banorte experts explained in a study that the risk aversion session in global markets is due to fears of an escalation of geopolitical tensions in the Middle East.

"In this regard, President Trump will meet with his security team in Washington to discuss the conflict. Trump also issued a demand for Iran's "unconditional surrender" and warned of a possible attack against the country's leader," they added.

Greater risk aversion

Gabriela Siller, director of analysis at Banco Base, noted in a report that while a potential U.S. intervention could end the conflict more quickly, it could also increase risk aversion in financial markets, leading to a search for safe haven assets, coupled with high oil prices due to fears of supply disruptions.

“It’s important to note that there is no unanimous support in the United States for involvement in the war on Israel’s behalf. Virginia Senator Tim Kaine’s initiative, which calls for the U.S. military to require congressional approval to act in the Israel-Iran conflict, continues to gain traction after Republican Congressman Thomas Maisse backed it, writing in X that this is not America’s war, and that Congress should decide the matter,” the post reads.

Oil companies on the stock market rise

Listed oil companies maintained their gains again in the face of continued military attacks in the Middle East.

Shares of Petrobras, a Brazilian energy company, rose 2.95% to 35.95 Brazilian reais, followed by U.S. energy firm Chevron, which rose 1.93% to $148.85.

The third biggest gainer in Tuesday's trading session was French energy company TotalEnergies, which produces oil and biofuels, up 1.82% to a price of 55.51 euros.

BP, formerly British Petroleum, a global energy company, rose 1.66% to 389.05 euros per share.

Gold rises

The price of gold rose on Tuesday as the conflict between Israel and Iran continued, prompting market participants to seek refuge in the precious metal.

The precious metal had a slight increase of 0.2% to $3,390.59 an ounce.

US gold futures, meanwhile, fell 0.3% to $3,406.9.