Oil prices surged on Wednesday as the US president ramped up his threats against Tehran.
Donald Trump said Iran had “better get smart” about a nuclear deal with the US as he appeared to threaten a return to military action.
Oil prices spiked as the fragile truce between the US and Iran appeared under fresh pressure.
The US president posted an image of himself brandishing an assault rifle against the backdrop of an exploding hillside with the caption “no more Mr Nice Guy”.
Mr Trump wrote on his Truth Social platform: “Iran can’t get their act together. They don’t know how to sign a nonnuclear (sic) deal. They better get smart soon!”
The president has justified the US-Israeli bombing campaign by saying it is intended to halt Iran’s nuclear weapons programme.
The threat of escalation comes after Mr Trump used a speech during the King’s state visit to claim Charles had agreed with him on the need to prevent Tehran acquiring a nuclear bomb.
Conversations with the King are normally kept private but the president said in his speech at the white-tie state banquet: “We have militarily defeated that particular opponent, and we’re never going to let that opponent ever – Charles agrees with me, even more than I do – we’re never going to let that opponent have a nuclear weapon.”
The conflict has seen Iran restrict shipping through the Strait of Hormuz, a vital route for oil and gas exports, with the US imposing its own blockade in response.
The constraint on supplies of oil, gas and other products from the Middle East has caused chaos on global markets.
Oil prices surged back up to nearly 115 US dollars (£85) a barrel in Wednesday morning trading, with stock markets also on the back foot once more.
The cost of benchmark Brent crude lifted 3% to a three-week high of 114.74 dollars a barrel, marking the seventh straight day of oil price rises.
It comes despite market hopes of respite from relentless oil price rises after the United Arab Emirates’s move to quit Opec on Tuesday amid reports it is planning to increase output.
Among stocks, the FTSE 100 Index was also lower on Wednesday, down 0.8% or 84.7 points at 10248.1.
