US crude oil prices edged higher on Monday after President Donald Trump issued a 48-hour ultimatum to Iran to reopen the Strait of Hormuz, escalating tensions in the Middle East and raising concerns over global energy supplies. At 0015 GMT, West Texas Intermediate (WTI) crude was up 0.44% at $98.66 per barrel, after briefly crossing the $100 mark earlier in the session. Brent crude, the global benchmark, was largely steady at around $112 per barrel.
The gains come as the conflict between the United States and Iran enters its fourth week, with continued disruption to shipping through the Strait of Hormuz — a key route that handles nearly 20% of global oil and gas flows.
Trump warned that US forces would “hit and obliterate” Iran’s power infrastructure if the strait is not fully reopened within 48 hours. The ultimatum has intensified fears of further escalation in the region.
Iran responded by warning that it would target energy and desalination infrastructure linked to the United States and its allies if military action is taken.
The disruption has already led to a sharp rise in oil prices. Prior to the conflict, WTI crude traded near $67 per barrel, while Brent was around $72. Prices have since surged amid supply concerns and reduced tanker movement through the strait.
Asian markets reacted negatively to the developments, with South Korea’s Kospi falling more than 4% and Japan’s Nikkei 225 declining over 3% in early trading.
Meanwhile, Israel signalled that military operations in the region could continue for several more weeks, adding to uncertainty in global energy markets.
Analysts said oil prices are likely to remain volatile in the near term, with further movements dependent on developments around the Strait of Hormuz and broader geopolitical conditions.
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