Brent crude futures hovered near $112 per barrel on Monday after briefly touching $115 earlier in the session, as investors weighed President Donald Trump’s ultimatum demanding that Iran reopen the Strait of Hormuz. Over the weekend, Trump warned that he would “obliterate” key Iranian power plants if the crucial waterway was not restored to shipping by late Monday.
Tehran responded by threatening to strike US and Israeli interests across the region—including energy, information technology, and desalination infrastructure—if its own energy facilities were attacked. Oil prices have risen roughly 50% since the war in Iran began, with the conflict showing no signs of abating, effectively closing the Strait of Hormuz and significantly reducing oil production across the Middle East.
The International Energy Agency has warned that the global oil market is confronting its largest-ever supply shock, despite a major release of emergency reserves and US efforts to enable additional exports of Russian and Iranian crude.