Oil Jumps as Trump Threatens Iran Over Strait of Hormuz
News Desk/Agencies
Islamabad: Global oil prices climbed further on Tuesday as Donald Trump intensified pressure on Iran, warning of severe consequences if Tehran fails to reopen the critical Strait of Hormuz.
Benchmark Brent crude rose 57 cents, or 0.5%, to $110.34 a barrel by 1202 GMT, while West Texas Intermediate crude jumped $1.26, or 1.1%, to $113.67, reflecting mounting fears of prolonged supply disruption.
Trump issued a stark warning to Tehran, threatening to unleash “hell” if it does not meet his 8pm EDT deadline to restore traffic through the strait. “They could be taken out,” he said, signaling possible escalation if no agreement is reached.
Tehran, however, rejected a US proposal conveyed via a mediator, insisting that only a permanent end to hostilities, not a temporary ceasefire, would resolve the crisis.
Iranian forces have effectively blocked the Strait of Hormuz since US and Israeli strikes began on February 28, choking a route that normally carries about 20% of global oil shipments.
Market analysts say the looming deadline is now driving price movements as much as supply fundamentals. “Clock-watching is now playing almost as big a role in oil markets as the fundamentals,” said Tim Waterer of KCM Trade, noting that while ceasefire hopes could ease prices, persistent supply risks are keeping a firm floor under the market.
Tensions escalated further after Iran’s Revolutionary Guards halted two Qatari LNG tankers, ordering them to remain in place without explanation. Shipping data shows vessel traffic through the strait has already slowed significantly since last week.
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At the diplomatic level, the United Nations Security Council is set to vote on a resolution aimed at safeguarding commercial shipping, though the measure has been diluted after opposition from China to any use-of-force provisions.
Meanwhile, the conflict is spilling across the region. Explosions were reported in Damascus as Israeli defenses intercepted Iranian missiles, while Saudi Arabia said it shot down seven ballistic missiles targeting its Eastern Region, with debris landing near key energy facilities.
Supply concerns are intensifying globally. Refiners in Asia and Europe are scrambling for alternative crude, pushing spot premiums for US oil to record highs. Saudi Aramco has already raised its May selling price for Arab Light crude to Asia to a record premium of $19.50 per barrel above the Oman/Dubai benchmark.
Adding to the strain, Russia reported damage to the Caspian Pipeline Consortium’s Black Sea terminal following a Ukrainian drone attack, disrupting infrastructure that handles around 1.5% of global supply.
Despite the tightening market, the OPEC+ alliance agreed to increase output quotas by 206,000 barrels per day in May. However, analysts say the move may have limited real impact, as export constraints linked to the Hormuz disruption are preventing key producers from ramping up shipments.
With geopolitical tensions escalating and a critical supply artery effectively shut, oil markets remain on edge—caught between the threat of further conflict and the fragile hope of a diplomatic breakthrough.
