Oil Prices Surge as Iran Strait of Hormuz Threat Looms | Brent Futures Climb Above $113

Oil prices surged Monday as President Donald Trump issued a 48-hour ultimatum to Iran to reopen the Strait of Hormuz, threatening the “destruction” of key Iranian energy infrastructure if the vital waterway remains closed. Brent crude futures traded above $113 a barrel, having earlier reached $115, as investors assessed the escalating tensions.

The ultimatum, delivered over the weekend, followed days of heightened rhetoric between Washington and Tehran. Trump warned he would “obliterate” Iran’s power plants if the Strait of Hormuz – through which approximately 20% of the world’s oil supply passes – is not restored to navigation by Monday evening, according to reports. In response, Iranian officials stated they would target U.S. And Israeli energy, technology, and desalination infrastructure across the region should their own facilities be attacked.

Oil prices have risen roughly 50% since the start of the conflict in Iran, a situation exacerbated by the effective closure of the Strait of Hormuz and a significant reduction in Middle Eastern oil production. The International Energy Agency (IEA) has cautioned that the global oil market is facing its largest shock in history, despite substantial releases from emergency reserves and U.S. Efforts to facilitate the sale of Russian and Iranian oil.

The conflict, now entering its fourth week, is already impacting global markets. Asian stock markets tumbled on Monday, with Seoul shedding 6.5% and Tokyo falling 3.5%. The head of the IEA has warned that the world economy is under “major threat” from the energy crisis. Gas prices in the United States are similarly climbing, reaching an average of $3.94 per gallon on Sunday, an increase of nearly a dollar since the war began, and potentially reaching $4.00 on Monday, according to analysis from GasBuddy.

Treasury Secretary Scott Bessent addressed the war’s economic impact on NBC’s “Meet the Press” on Sunday, but details of the discussion were not immediately available. Goldman Sachs on Friday suggested that high oil prices could persist through 2027.

Iran has warned that if Trump acts on his threat, it would completely close the Strait of Hormuz and would not reopen it until any destroyed power plants are rebuilt.