Oil prices increased on Tuesday as a deadline from U. S. President Donald Trump approached, demanding Iran reopen the Strait of Hormuz or face attacks on its infrastructure. By 1209 GMT, Brent crude futures rose by $1.39 to $111.16 per barrel, while U. S. West Texas Intermediate (WTI) crude reached nearly a four-week high at $116 a barrel, up $3.58. WTI typically trades at a lower price than Brent, but this trend reversed as immediate deliveries gained higher prices. Trump set the deadline for Iran to comply by 8 p.m. Washington time (midnight GMT), as the strait is vital for global oil supply. Iranian forces closed the strait after U. S. and Israeli attacks began on February 28. Trump threatened severe retaliatory strikes if Iran did not comply, stating that “every bridge in Iran will be decimated” by the deadline.
On the same day, Iranian media reported intensified attacks on various Iranian infrastructures, while Iran rejected a U. S. proposal for a ceasefire. The conflict has driven oil prices up, benefiting countries still capable of exporting oil, like Iran and Saudi Arabia, while others have faced significant losses. The U. N. Security Council was set to vote on a resolution to protect shipping in the strait, although the proposal was expected to be weakened due to opposition from China. Meanwhile, OPEC+ agreed to raise May output quotas by 206,000 barrels per day, but actual increases may be limited due to the Strait of Hormuz’s closure.
With information from Reuters
