Oil markets reacted after Donald Trump escalated tensions with Iran, triggering a noticeable spike in global oil prices. The developments tied to the ongoing Iran War have heightened concerns over supply disruptions, particularly around the strategically vital Strait of Hormuz.
Donald Trump’s threat to Iran spikes oil price
The latest jump in oil price came after Donald Trump warned that the US could target Iranian energy infrastructure if the Strait of Hormuz remains closed. In a Truth Social post, he stated, “Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!! Open the F***in’ Strait, you crazy b******s, or you’ll be living in Hell – JUST WATCH!”
Brent crude, the global benchmark, climbed 1.4% to $110.60, while US crude rose 1.8% to $113.60 on Sunday. The surge reflects immediate market anxiety as geopolitical risks continue and traders anticipate potential supply constraints.
The latest statement followed an earlier ultimatum issued on March 21, which had already been extended to April 6. The renewed threat is a more aggressive stance compared to Trump’s earlier claim that the US did not rely on the strait. Iran responded with a senior official saying the waterway would remain closed until the country is “fully compensated” for war damages.
The standoff has raised fears of prolonged disruption in one of the world’s most critical oil transit routes. Efforts to ease tensions are ongoing. Oman confirmed it held talks with Iran on Sunday to negotiate the reopening of the strait. However, uncertainty remains high, and markets continue to react to each development.
Oil-producing nations have also voiced concern. OPEC+ members warned that attacks on energy infrastructure could have lasting consequences. The impact is already visible beyond crude markets. US gas prices have surged to $4.11 per gallon, the highest level since 2022, marking a nearly 38% increase since the start of the Iran War.
For now, the situation remains uncertain.
Originally reported by Devanshi Basu on Mandatory.com.
