Oil Prices Rise as Bessent Warns of Iranian Airline Shutdown Amid Iran-US Tensions

Oil prices rose on Tuesday amid growing concern over tensions between Iran and the United States, after Treasury Secretary Scott Bessent said all Iranian airlines would be shut down starting Wednesday, according to CNBC.

Bessent made the remarks in an interview with CNBC, linking the warning to the broader dispute between Washington and Tehran. The comments came as world leaders gathered in New York for the United Nations General Assembly's High-level Week, where Iran-related tensions are expected to be a topic of discussion on the sidelines.

Traders responded to the prospect of further escalation by pushing crude prices higher, reflecting concern that heightened tensions in the region could affect oil supply routes, given Iran's position as a major oil producer near key Gulf shipping lanes.

Details of shutdown order unclear

It was not immediately clear from available reporting what legal authority the shutdown order relies on, which airlines or routes would be affected, or how it would be enforced. No immediate public response from the Iranian government or Iranian carriers was noted in the report.

Oil markets have been sensitive to developments involving Iran throughout the year, with prices tending to react quickly to signs of rising hostilities between Tehran and Washington.