Global oil prices climbed sharply on Tuesday as tensions escalated following a deadline set by Donald Trump for Iran to reopen the Strait of Hormuz or face severe military consequences.
Brent crude rose 1.27% to $111.16 a barrel, while U.S. West Texas Intermediate (WTI) jumped 3.18% to nearly $116, approaching a four-week high. In an unusual market shift, WTI traded above Brent, reflecting urgent demand for immediate oil supplies amid fears of prolonged disruption.
The crisis deepened after Iran effectively shut the vital shipping route—through which roughly one-fifth of global oil passes—following U.S. and Israeli strikes that began in late February. Trump warned that failure to comply by the deadline could result in widespread destruction of Iran’s infrastructure, including bridges and power plants.
Meanwhile, Iranian authorities rejected a ceasefire proposal conveyed through Pakistan, insisting on a permanent end to hostilities instead. Ongoing strikes have reportedly targeted transport networks, energy facilities, and industrial sites across Iran.
The disruption has driven oil prices higher, benefiting exporters still able to ship crude, including Saudi Arabia, Oman, and Iran, while others face heavy losses.
The United Nations Security Council is expected to vote on measures to safeguard shipping in the strait, though divisions among major powers may limit decisive action.
