Oil prices surged early Monday after President Donald Trump issued a 48-hour ultimatum to Iran to reopen the Strait of Hormuz or face decimation of its energy infrastructure, as Israel warned the war would continue for several more weeks.
Shortly after the 2200 GMT open, West Texas Intermediate (WTI), the US benchmark crude, for May delivery rose 1.8 per cent to just over $100 per barrel before retreating slightly. North Sea Brent crude for May delivery climbed to $113.44 per barrel before sliding to around $111 about 45 minutes into trading.
On February 27, the day before US-Israeli attacks began on Iran, WTI stood at $67.02 and Brent at $72.48 per barrel.
Trump’s 48-Hour Ultimatum
Trump posted late Saturday on Truth Social that US forces would “hit and obliterate’ Iranian power plants, ‘starting with the biggest one first”, if Tehran did not fully reopen the Strait of Hormuz within 48 hours. The deadline falls at 23:44 GMT on Monday.
The strait is a critical maritime chokepoint through which approximately 20 percent of the world’s oil and gas shipments transit during normal conditions. Iran’s de facto blockade has nearly halted petroleum shipments through the waterway, sending prices soaring.
Iran’s army responded through Fars news agency, vowing to target energy and desalination infrastructure “belonging to the US and the regime in the region” if attacked.
Israel Expands Ground Campaign in Lebanon
Israeli military chief Lieutenant General Eyal Zamir said Sunday that his forces were expanding their ground campaign against Iran-backed Hezbollah in Lebanon and warned of a lengthy operation.
“We are now preparing to advance the targeted ground operations and strikes according to an organised plan,” Zamir said.
Read: Iran Missile Strikes Hit Israel’s Arad and Dimona, 115 Injured
The expansion of operations in Lebanon adds another front to a conflict that has already drawn in multiple regional actors. [Internal link: Israel-Hezbollah conflict timeline]
Tit-for-Tat Threats Escalate
In retaliation for the US-Israeli military operation, Iran is carrying out missile and drone strikes against infrastructure, particularly energy targets, in countries allied with Washington. Tehran has also targeted ships in the Gulf, specifically threatening vessels that venture into the strait.
The escalating threats have rattled global energy markets, with traders bracing for potential supply disruptions should the conflict widen further.
As the 48-hour deadline approaches, all eyes remain on the Strait of Hormuz, a narrow waterway whose fate now hangs on the outcome of the highest-stakes confrontation between Washington and Tehran in decades.
