Oil Prices Surge as Trump Threatens Strike on Iran’s Pickaxe Mountain Nuclear Facility

Oil prices extended their rally on Tuesday after US President Donald Trump warned that the United States could target Iran’s Pickaxe Mountain nuclear facility, while military tensions between Washington and Tehran continued to escalate.

Trump Signals Possible Military Action Against Pickaxe Mountain

Speaking in an interview, President Trump said the United States is considering a strike on Pickaxe Mountain, a heavily fortified underground nuclear site located near Iran’s damaged Natanz uranium enrichment facility in the Zagros Mountains. He stated that the US has “a lot of eyes” on the facility and claimed there was currently “no activity” there, but indicated that military action could come soon.

Security experts believe Pickaxe Mountain may house uranium enrichment capabilities and nuclear material stockpiles. The facility is reportedly buried up to 2,000 feet beneath granite, making it one of Iran’s most protected nuclear sites. Analysts have also suggested that even the US military’s most powerful bunker-buster bombs may struggle to destroy the complex because of its depth.

US-Iran Conflict Intensifies Around the Strait of Hormuz

Trump’s remarks came as US forces launched another round of military strikes against Iran on Monday afternoon, marking the third consecutive day of attacks. According to US Central Command (CENTCOM), the operations are intended to weaken Iranian military capabilities and reduce threats against commercial vessels and civilian shipping in the Strait of Hormuz.

The renewed military campaign follows Washington’s decision to reinstate its naval blockade of Iran after accusing Tehran of targeting commercial ships using the strategic waterway. The Strait of Hormuz remains one of the world’s most important energy routes, carrying a significant share of global crude oil exports.

Oil Prices Reach Highest Level in Four Weeks

Growing geopolitical uncertainty immediately affected global oil markets. Brent crude futures climbed to around $84.80 per barrel, while WTI rose to approximately $79.84 per barrel. Earlier in the session, both contracts gained more than $2 per barrel, while Brent had already surged 9.6% during the previous trading session, marking its largest one day increase since May 2020.

The latest price rally has pushed oil to its highest level since the June 17 memorandum of understanding, when the United States and Iran agreed to end their previous conflict. However, renewed military operations have revived concerns over possible supply disruptions, inflation risks, and further volatility in global financial markets as investors closely monitor developments in the Middle East.