Global oil prices climbed sharply after Donald Trump as US President Donald Trump escalated rhetoric against Iran, issuing a ‘final’ deadline tied to the reopening of the strategically critical Strait of Hormuz. Brent crude rose 1.4% to trade above $110.6 per barrel, while US benchmark WTI hovered near $113.34, as markets reacted to the heightened risk of supply disruptions.
Trump on Monday offered rare praise for Iran’s military, but underlined that Tuesday’s deadline for truce is “final”. Notably, this is the sixth time that Trump has extended the final deadline for truce with Tehran.
Monday marked the 38th day of the US, Israel-Iran conflict. The day has been riddled with mixed signals from the warring blocs. Trump on Monday hinted at a potentially big attack on Iran ahead of Tuesday’s ceasefire deadline, amid the ongoing Middle East war.
During his address to the media, Trump claimed that the whole country could be taken down in a single night, and that this night could be tomorrow.
ALSO READ: ‘Maybe Tomorrow’: Donald Trump Claims Iran Can Be Taken Out In One Night
“Iran can be taken down in one night, maybe tomorrow. Entire country of Iran can be taken down in one night”, Trump stated.
Earlier in the day, the republican President had called Iranians “capable fighters”, in a moment of rare praise for Tehran.
“Iranians are capable fighters, they are very tough people,” he remarked. However, he added that even though the enemy is strong, they are not as strong as about a month ago.
“The enemy is strong, not so strong like they were about a month ago.”
Supply Shock To Energy Crisis
The ongoing conflict has triggered what analysts describe as a severe supply shock, now evolving into a broader global energy crisis. Prices for crude and refined products have surged, adding to inflationary pressures worldwide and raising concerns over slowing economic growth.
Producer alliance OPEC+ flagged that damage to energy infrastructure could have long-term implications for supply, even after hostilities subside. While the group signaled higher output quotas, actual flows remain constrained due to bottlenecks in the Gulf.
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Brent’s prompt spread – a key indicator of market tightness – has widened dramatically into steep backwardation, surpassing levels seen during the Russia-Ukraine war. Physical markets are flashing similar signals. Dated Brent, a benchmark for real-world cargoes, has surged past $140 per barrel – its highest level since 2008 – underscoring the scramble for immediate supplies.
Hormuz Remains The Critical Chokepoint
Control of the Strait of Hormuz – a vital artery linking Gulf producers to global markets – remains central to the crisis. Iran continues to regulate transit, permitting only select ships to pass. While there are tentative diplomatic efforts, including talks involving Oman, uncertainty persists over how quickly flows can normalize.
Investor sentiment has also been shaken by mixed messaging from Washington. Trump has alternated between suggesting a quick resolution and threatening escalation, including expanded military action. With the conflict entering its sixth week and attacks continuing across the region, oil markets remain firmly on edge.
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