Oil prices surge as Trump threatens new attacks on Iran
A map showing the Strait of Hormuz and a 3D printed oil pipeline are seen in this illustration taken March 23, 2026.
What you need to know:
- Strait of Hormuz closure disrupts Middle East oil exports, refiners seek alternatives
- Trump threatens further action if Strait remains closed
- Iran allows passage for select vessels
- OPEC+ agrees modest output rise, war limits actual increases; Russian supply also disrupted
Oil prices climbed on Monday on continuing fears of supply losses because of shipping disruptions in the key Middle East producing region from the U.S.-Israeli war with Iran.
Brent crude futures LCOc1 rose $1.71 (Sh221.96), or 1.6 percent, to $110.74 (Sh14,374.05) a barrel by 3:57am. US West Texas Intermediate crude CLc1 futures gained $0.71 (Sh92.16), or 0.6 percent, to trade at $112.25 (Sh14,570.05) per barrel.
On Thursday, the last trading day before the Good Friday holiday break, WTI settled up more than 11 percent and Brent soared nearly 8 percent in volatile trading, recording their biggest absolute price increase since 2020, as U.S. President Donald Trump promised to continue attacks on Iran. O/R
The Strait of Hormuz, which carries oil and petroleum products from Iraq, Saudi Arabia, Qatar, Kuwait and the United Arab Emirates, remains largely closed by Iranian attacks on shipping after the war began on February 28.
Because of the Middle East supply disruptions, refiners are seeking alternative sources for crude, particularly for physical cargoes in the U.S. and the UK North Sea.
"Global buyers are bidding aggressively for (US) Gulf Coast barrels and Brent is rallying even faster," the Schork Group said in a client note on Monday.
On Sunday, Trump ratcheted up pressure on Tehran, threatening in an expletive-laden Easter Sunday social media post to target Iran's power plants and bridges on Tuesday if the strategic Strait of Hormuz is not reopened.
Still, some vessels, including an Omani-operated tanker, a French-owned container ship and a Japanese-owned gas carrier, crossed the Strait of Hormuz since Thursday, shipping data showed, reflecting Iran's policy to allow passage for vessels from countries it deems friendly.
The war threatens to linger on as Iran has officially told mediators it is not prepared to meet with U.S. officials in the Pakistani capital Islamabad in coming days and efforts to produce a ceasefire have reached a dead end, the Wall Street Journal reported on Friday.
On Sunday, OPEC+, consisting of some members of the Organization of the Petroleum Exporting Countries and allies such as Russia, agreedto a modest rise of 206,000 barrels per day for May.
However, that decision will largely exist on paper as several of the group's key producers are unable to raise output due to the war.
Russian supply has been disrupted recently by Ukrainian drone attacks on its Baltic Sea export terminal. Media reports on Sunday said its Ust-Luga terminal resumed loadings on Saturday after days of disruptions.
Follow our WhatsApp channel for breaking news updates and more stories like this.
