Oil prices climbed sharply above $110 a barrel after Donald Trump threatened to strike Iranian infrastructure unless the Strait of Hormuz reopens by Tuesday.
The escalation marks a dangerous turning point in the six-week conflict, with diplomacy stalled and supply disruptions intensifying across global energy markets.
Trump warned Iran would face severe consequences if it failed to comply, declaring Tuesday would be “Power Plant Day, and Bridge Day.”
Brent crude rose above $111 while physical market prices surged past $140, levels not seen since 2008, reflecting acute shortages and strong demand for immediate supply.
Despite OPEC+ approving a modest output increase, production constraints and ongoing conflict have limited any meaningful supply response.
The surge in oil prices is feeding into inflation, with US gasoline prices rising sharply and analysts expecting stronger consumer price data in the coming weeks.
With the Strait of Hormuz largely closed and alternative supply routes under pressure, markets are bracing for prolonged volatility and broader economic fallout.