- WTI crude briefly exceeds $100 per barrel. barrel; Brent reached $113.44.
- Prices are moving beyond the February 27 levels of $67.02 (WTI) and $72.48 (Brent).
- After Trump’s warning, Iran threatens to blow up energy sites in the US, allies.
TOKYO: Oil prices rose early on Monday after US President Donald Trump gave Iran a 48-hour ultimatum to open the Strait of Hormuz or face the decimation of its energy infrastructure and Israel warned the war would continue for weeks.
Shortly after the 2200 GMT open, the price of West Texas Intermediate (WTI), the US benchmark oil, for May delivery rose 1.8 percent to just over $100 a barrel. barrel before retreating slightly.
The price of North Sea Brent crude for May delivery rose at a similar rate to $113.44 a barrel. barrel before falling to around $111 around 45 minutes into trading.
On February 27, the day before the US-Israeli attacks on Iran began, they stood at $67.02 and $72.48 per barrel, respectively.
Trump and Tehran have issued threats as the war entered its fourth week, with the US president demanding the Islamic Republic reopen the blocked Strait of Hormuz, through which about 20 percent of the world’s oil and gas shipments pass.
The bottleneck has almost stopped all oil transport through the narrow waterways and oil prices have risen.
Trump wrote on Truth Social late Saturday that US forces would “hit and wipe out” Iranian power plants – “starting with the biggest first” – if Tehran did not fully reopen the strait within 48 hours, or 23:44 GMT on Monday, according to the time of his post.
In response, Iran’s army said it will target energy and desalination infrastructure “belonging to the US and the regime in the region,” according to the Fars news agency.
Meanwhile, Israel’s military chief, Lt. Gen. Eyal Zamir, said Sunday that his forces were expanding their ground campaign against Iran-backed Hezbollah in Lebanon and warned of a protracted operation.
“We are now preparing to advance the targeted ground operations and strikes according to an organized plan,” he said.
In retaliation for the US and Israeli military operation, Iran is carrying out missile and drone strikes against infrastructure – especially energy targets – in countries allied with Washington, as well as against ships in the Gulf, specifically threatening those entering the Strait.
