Oil prices rose after U.S. President Donald Trump repeated his threats to attack Iran if it did not reopen the Strait of Hormuz. He warned that Iran would face severe consequences if its leaders did not act by a deadline. These threats caused prices for oil to increase significantly.
As of now, West Texas Intermediate crude oil traded at $112.41 per barrel, while Brent crude rose to $109.77 per barrel. This rise in prices happened because the closure of the Strait of Hormuz has disrupted oil supplies since a conflict began on February 28.
Trump said Iran must respond by Tuesday evening. He noted that Iran’s leaders seem to be negotiating. However, the closure of this vital waterway has raised prices for many fuels, including jet fuel and gasoline.
Reports state that the U.S. and Iran are discussing a plan to end the conflict. Iran has presented its own ten-point plan instead of accepting a U.S. ceasefire offer. But analysts believe a ceasefire agreement is unlikely soon.
Recently, some shipping has started again through the Strait of Hormuz, but it is still very low compared to normal levels. A full reopening could take several months.
