Oil Prices Extend Gains as Hormuz Deadline Drives Market Focus
Oil prices continued to rise during Asian trading on Monday, building on strong gains from the previous session. Investors remain focused on U.S. President Donald Trump’s deadline for Iran to reopen the Strait of Hormuz, a key global shipping route.
Brent crude futures for June delivery climbed 1.7% to $110.77 per barrel, following an almost 8% surge in the prior session. Meanwhile, West Texas Intermediate (WTI) crude held steady at $111.95 per barrel after jumping more than 11% before the Good Friday holiday.
Trump Deadline Raises Supply Concerns
President Trump warned that Iran must reopen the Strait of Hormuz by Tuesday at 8 p.m. Eastern Time, signaling potential escalation if tanker traffic is not restored.
Over the weekend, Trump intensified pressure through social media posts, suggesting that critical Iranian infrastructure could be targeted if the Strait remains closed. His statements have heightened market fears over possible disruptions to global oil supply.
Iran Links Reopening to War Compensation
Iran responded by indicating that transit through the Strait of Hormuz could resume only if part of the revenue is allocated to compensate the country for damages related to the ongoing conflict.
This condition has added another layer of uncertainty, raising doubts about how quickly normal shipping operations can resume.
Ongoing Disruptions Fuel Market Tension
Shipping activity through the Strait has been severely restricted for weeks, keeping global energy markets on edge. The renewed tensions have increased the risk of further escalation across the Gulf region.
OPEC+ Output Increase Seen as Limited Relief
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) announced plans to increase production by 206,000 barrels per day in May across eight member countries.
However, traders remain skeptical about the immediate impact of this supply increase, as logistical constraints may delay additional crude reaching global markets.
Rising Oil Prices Stoke Inflation Concerns
The continued surge in oil prices is reinforcing inflation fears across global markets. Higher energy costs are expected to put pressure on transportation, manufacturing, and consumer sectors if the Strait of Hormuz remains blocked.
