Increasing upward pressure on oil prices

As reported by CNBC (Consumer News and Business Channel):

Oil prices rose Friday as President Donald Trump is likely to turn his attention back to the stalemated conflict with Iran after leaving a summit in China with President Xi Jinping.

International benchmark Brent crude futures for July gained more than 3% to close at $109.26 a barrel. U.S. West Texas Intermediate futures for June advanced more than 4% to settle at $105.42 per barrel.

Trump told Fox News that he is losing patience with Iran. “I am not going to be much more patient. They should make a deal,” the president said in an interview that aired Thursday evening.

Trump is talking tough, but there is nothing he can do.  I can confidently report from frequent views of broadcasts on Al Jazeera that the current Iranian leadership do not intend to bow to pressure, including military pressure.  They are under an economic strain because of prior sanctions and the current situation, but are willing to outlast Trump from what they consider a position of strength.  If Trump increases hostilities, Iran has enough weaponry still available to wreak havoc on U.S. military bases and on Gulf Coast allies of the U.S. (several of whom have already denied the U.S. continuing access to their airbases for maneuvers).  If Trump does nothing, the Strait remains closed or subject to limited passage by ships paying tolls to Iran.  Many countries with absent fuel reserves are already instituting restrictive measures on their citizenry.  The price of oil is going to continue to increase.  Trump's idea of rescinding the U.S. tax on gasoline is a drop in the bucket and will not materially sustain the U.S. economy. The only logical response to the current crisis would be for Trump to "declare victory" and withdraw.

Those who want to "play" the situation financially and don't want to trade commodity futures directly might consider JETS on the NASDAQ.  That is the symbol for an exchange-traded fund that holds shares of major U.S. airlines (top holdings are DAL, AAL, UAL, and LUV.  Put options are available.

Chart from Trading Economics.