Oil prices rise as Donald Trump issues fresh ultimatum on Strait of Hormuz; Brent nears $111

Oil prices began the week on a strong note, maintaining above the $100 per barrel mark on Monday, as the ongoing Middle East conflict continues to disrupt energy supply routes and unsettle global markets.In early trade, US benchmark West Texas Intermediate (WTI) climbed 1.86% to $113.62 per barrel. North Sea Brent crude also edged higher, rising 1.16% to $110.30 per barrel at the market open.The gains come as tensions involving Iran and the United States continue to escalate. US President Donald Trump issued a Tuesday deadline for Iran to halt the war and restore movement through the Strait of Hormuz, a crucial passage for global oil shipments. In a post on Truth Social on Sunday, he warned of potential strikes on Iranian infrastructure if the demands were not met."Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!!" Trump wrote. He later told Fox News there was a "good chance" Iran would agree to a deal on Monday.Meanwhile, markets had already reacted sharply before the weekend. On Thursday, ahead of the Good Friday holiday, both major crude benchmarks recorded steep gains in volatile trading. WTI ended the session up by more than 11%, while Brent rose nearly 8%, marking their largest absolute price increases since 2020, after Trump signalled that attacks on Iran would continue.Separately, the Organisation of the Petroleum Exporting Countries (OPEC) has announced a production adjustment of 206,000 barrels per day, which will come into effect in May 2026. The decision followed a virtual meeting held on April 5 by eight OPEC+ members, Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman, to review market conditions and assess the outlook. The Strait of Hormuz has remained under Iran’s chokehold since the conflict erupted on February 28, severely disrupting a key route for oil and petroleum exports from Iraq, Saudi Arabia, Qatar, Kuwait and the United Arab Emirates. Now in its sixth week since initial strikes by the US and Israel on Iran, the war has widened across the region and unsettled the global economy. With Iran effectively blocking the Strait, through which about 20% of the world’s oil and gas typically passes, supplies have been hit hard, driving petroleum prices higher and forcing refiners to turn to alternative sources, particularly physical cargoes from the United States and the UK North Sea.