Global oil prices experienced volatile trading after Donald Trump threatened military strikes on Iran if it fails to reopen the Strait of Hormuz, with Brent crude briefly surging above $110 per barrel on Monday amid fears of supply disruptions.
The sharp market reaction followed a strongly worded social media post by Trump on Sunday, in which he warned that the United States would target critical Iranian infrastructure if ships were not allowed safe passage through the vital shipping lane by Tuesday.
"Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!! Open the [expletive] Strait, you crazy [expletive]', or you'll be living in Hell - JUST WATCH! Praise be to Allah. President DONALD J. TRUMP," Trump posted.
The Strait of Hormuz, a narrow but crucial corridor, handles roughly a fifth of global energy shipments, making any disruption a major concern for international markets.
Brent crude prices initially jumped above $110 a barrel before easing slightly after reports emerged of potential diplomatic engagement.
According to Axios, the US, Iran and regional mediators are discussing terms of a possible 45-day ceasefire that could pave the way for a longer-term resolution.
However, BBC News noted that the report has not been independently verified, and the White House did not immediately respond to requests for comment.
By late morning trading in Asia, Brent crude was up 0.7% at $109.80, while US-traded oil hovered around $111.62, reflecting continued uncertainty in the market.
Tensions have been escalating since late February, with Tehran threatening to target vessels attempting to pass through the strait in retaliation for US and Israeli airstrikes.
Over the weekend, Iran claimed responsibility for attacks on petrochemical facilities in Kuwait, Bahrain and the United Arab Emirates, further heightening fears of prolonged disruption to energy supplies.
The Iranian Revolutionary Guard Corps warned on Monday that it would intensify strikes against US economic interests if attacks on Iranian infrastructure persist.
Meanwhile, a senior Iranian military official dismissed Trump’s earlier ultimatum, describing it as “helpless, nervous, unbalanced and stupid,” and cautioning that “the gates of hell will open” if tensions continue to rise.
Efforts to stabilise the market have seen limited progress. The OPEC+ group, which includes major producers such as Saudi Arabia and Russia, agreed to a modest production increase of 206,000 barrels per day in May.
However, analysts note that the output boost may have little immediate impact, as several member states face constraints linked to the ongoing conflict.
With geopolitical risks intensifying and supply chains under pressure, global energy markets remain on edge, raising concerns over rising fuel costs and broader inflationary pressures worldwide.
