23.03.202607:39:14UTC+00Oil Jumps as US, Iran Trade Threats

WTI crude futures rose above $101 per barrel on Monday, putting them on course for their highest close since mid-2022 as investors reacted to escalating tensions over the Strait of Hormuz. Over the weekend, Trump issued an ultimatum to Iran, vowing to “obliterate” major Iranian power plants if the vital shipping route is not reopened by late Monday. Tehran countered that it would strike US and Israeli assets across the region — including energy, information technology, and desalination infrastructure — if its own energy facilities are attacked. A senior Iranian official also warned that financial institutions purchasing US Treasuries could be deemed “legitimate targets.”

Oil prices have surged roughly 50% since the onset of the Iran war, as the conflict shows no sign of abating, effectively closing the Strait of Hormuz and sharply curtailing Middle Eastern oil production. A coordinated release of strategic reserves, along with US efforts to facilitate additional flows of Russian and Iranian crude, has so far failed to halt the price rally.