Global oil prices climbed sharply on Monday after Donald Trump issued a 48 hour ultimatum to Iran to reopen the Strait of Hormuz, intensifying fears of a prolonged energy crisis and wider regional conflict.
Benchmark US crude, West Texas Intermediate (WTI), rose 0.44% to $98.66 per barrel in early trading, after briefly crossing the $100 mark. Meanwhile, Brent crude, the global benchmark, hovered at $112.17 per barrel amid volatile market reactions.
The spike follows escalating tensions between Washington and Tehran, with Trump warning that US forces could “hit and obliterate” Iran’s energy infrastructure if the strategic waterway remains blocked.
The Strait of Hormuz, a critical global oil route through which about 20% of the world’s petroleum shipments pass, has been severely disrupted, sending shockwaves across international markets.
Iran responded with its own threats, warning it could target US-linked energy facilities in the region, further deepening fears of a broader conflict involving multiple actors.
The crisis also rattled Asian stock markets, with South Korea’s Kospi index plunging 4.69% and Japan’s Nikkei 225 falling 3.54% in early trading, reflecting investor anxiety over supply disruptions and geopolitical instability.
Tensions have been further inflamed by Israel’s military operations in the region. Israeli military chief Eyal Zamir signalled an expansion of ground operations against Iran-backed Hezbollah in Lebanon, warning that the conflict could stretch on for weeks.
Since the escalation began, oil prices have surged dramatically. WTI traded at $67.02 per barrel and Brent at $72.48 before the outbreak of hostilities, highlighting the scale of the current market disruption.
With Iran reportedly launching missile and drone strikes targeting energy infrastructure and vessels in the Gulf, concerns are mounting over the stability of global energy supply and the risk of further economic fallout.
