Oil prices rose sharply on Tuesday as the deadline set by the United States for Iran to reopen the Strait of Hormuz—a vital waterway through which approximately one-fifth of global oil supply passes—is set to expire. According to Operative Information Center-OMM, citing foreign media, US President Donald Trump has warned that bridges and power plants could be targeted if Tehran fails to comply with the demands.
In early trading sessions, Brent crude rose by 1.6% to reach $111.51 per barrel, while WTI (West Texas Intermediate) crude surged by 3.1% to $115.86 per barrel. The market volatility follows US President Donald Trump's ultimatum, giving Tehran until Wednesday to reopen the strait or face severe measures. Meanwhile, Iran has reportedly rejected a ceasefire proposal mediated by Pakistan, emphasizing that only a permanent resolution to the conflict would be acceptable.
Priyanka Sachdeva, senior market analyst at Phillip Nova, stated that the risk of war is no longer theoretical and that damage to infrastructure could delay oil supplies for months. The effective closure of the strait since February 28 has dealt a significant blow to exports from Gulf nations. Tim Waterer, chief market analyst at KCM Trade, noted that the time factor is playing a key role in the markets ahead of the ultimatum from US President Donald Trump.
The Strait of Hormuz is considered the world's most important oil transit chokepoint, linking Middle East petroleum producers with key markets in Asia, Europe, and North America. Any prolonged disruption in this region traditionally leads to significant spikes in global energy costs and heightened geopolitical tensions. As Asian and European refiners seek alternatives, US oil prices have reached record highs. Saudi Aramco has increased the price of Arab Light crude for Asia for May, setting a record premium. Although OPEC+ agreed to increase daily production by 206,000 barrels in May, the impact of this decision remains limited due to the continued closure of the strait.
