Benchmark US oil prices rose Monday following a 48-hour ultimatum from President Donald Trump to Iran to reopen the Strait of Hormuz, amid escalating tensions in the region. At 0015 GMT, West Texas Intermediate (WTI) stood at $98.66 per barrel, up 0.44 percent, having briefly surpassed $100 earlier in the session.
The conflict has also weighed on Asian markets. South Korea’s Kospi index fell 4.69 percent to 5,509.88 points, while Japan’s Nikkei 225 dropped 3.54 percent to 51,483.91 points. North Sea Brent crude, the global benchmark, edged slightly down 0.02 percent to $112.17 per barrel.
Before the US-Israeli strikes on Iran on February 28, WTI was $67.02 and Brent at $72.48, highlighting the sharp spike driven by regional tensions.
Trump demanded that Iran reopen the strategically vital Strait of Hormuz — through which roughly 20 percent of the world’s oil and gas shipments pass — warning that US forces would “hit and obliterate” Iranian power plants if the strait remained closed beyond Monday, 23:44 GMT.
In response, Iran’s military vowed to target US and regional infrastructure, including energy and desalination facilities, according to the Fars news agency.
Meanwhile, Israel’s military chief, Lieutenant General Eyal Zamir, said his forces were expanding operations against Iran-backed Hezbollah in Lebanon and cautioned that the campaign could last several weeks. “We are now preparing to advance the targeted ground operations and strikes according to an organised plan,” he stated.
The standoff has nearly halted petroleum shipments through the strait, driving oil prices higher. Both sides have continued tit-for-tat threats, and Iran has conducted missile and drone strikes against energy infrastructure and ships in the Gulf.
Analysts warn that continued disruption in the Strait of Hormuz could further exacerbate global fuel prices and inflation.
