08:49 AM EDT, 05/20/2026 (MT Newswires) -- Oil prices eased early on Wednesday even as U.S. President Trump again threatened fresh attacks on Iran, while Iran threatened strikes outside the Persian Gulf region should the United States resume attacks.

West Texas Intermediate crude oil for July delivery was last seen down US$0.89 to US$107.77 per barrel, while July Brent oil was down US$2.25 to US$109.03.

The Guardian reported Iran's Islamic Revolutionary Guard Corps threatened to extend the war beyond the Persian Gulf region if the United States resumes strikes against the country after Trump on Tuesday promised a fresh wave of attacks if Iran does not agree to a peace deal.

The war has blocked the Strait of Hormuz since it began on Feb. 28, keeping the 20% of daily oil demand supplied by Persian Gulf nations mostly off the market and producing the world's largest-ever supply shock. Though the closure of the Strait has already pushed oil prices up by more than half, analytics firm Woods Mackenzie said if the war is extended until the end of the year, oil prices could rise as high as US$200 per barrel, though a quick settlement could lower Brent prices to US$80 by year end.

"The Strait of Hormuz is the most critical chokepoint in global energy markets, and a prolonged closure would become far more than an energy crisis," said Peter Martin, head of economics at Wood Mackenzie. "The longer disruption persists, the greater the impact on energy prices, industrial activity, trade flows and global economic growth."

The market is awaiting the start of the high-demand U.S. summer driving season, which begins with this weekend's Memorial Day holiday. The start of the season comes as U.S. oil inventories continue to decline, with the American Petroleum Institute's weekly survey showing stocks fell by 9.1-million barrels last week, well ahead of the consensus estimate for a drop of 3.4-million barrels. The Energy Information Administration will release official inventory data later on Wednesday morning.