Global oil prices climbed sharply as the Strait of Hormuz remained closed, intensifying supply concerns ahead of a critical deadline issued by Donald Trump for Iran to reopen the vital shipping route.
Brent crude rose above $110 per barrel, while US West Texas Intermediate also posted strong gains, reflecting heightened market anxiety over potential supply disruptions. The surge comes as traders react to the continued shutdown of the strategic waterway, which handles roughly a fifth of global oil shipments.
The closure of the Strait of Hormuz, triggered by the ongoing conflict involving Iran, the United States and Israel, has significantly constrained oil flows from the Middle East. Analysts warn that prolonged disruption could further tighten global supply and drive prices even higher.
Tensions have escalated further with Trump issuing an ultimatum to Tehran, demanding that the strait be reopened by a set deadline or face possible military action. He has warned that failure to comply could result in strikes targeting Iranian infrastructure.
Iran, however, has rejected calls for an immediate reopening, insisting that any resolution must include broader conditions, including a permanent end to hostilities. The standoff has deepened uncertainty in global energy markets, with investors closely watching diplomatic and military developments.
Despite efforts by oil producers to stabilise supply, the continued closure of the waterway has limited the effectiveness of increased output, as much of the region’s crude exports rely on passage through Hormuz.
Financial markets have also reacted to the uncertainty, with investors adopting a cautious stance amid fears of further escalation. Economists warn that sustained high oil prices could fuel inflation and slow global economic growth if the crisis persists.
As the deadline approaches, attention remains fixed on whether diplomatic efforts can avert further escalation or whether the crisis will trigger a broader disruption to global energy supplies.
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