Oil prices extended gains on Tuesday as a deadline imposed by the United States for Iran to reopen the Strait of Hormuz approaches. President Donald Trump has warned that Tehran must comply by 8 p.m. EDT on Tuesday or face military action targeting its bridges, power plants, and other infrastructure, threatening to “rain hell” on the country if it refuses.
The Strait of Hormuz, through which roughly one-fifth of global oil supply passes, has been effectively closed since Iranian forces blocked it following the start of U.S. and Israeli military operations on February 28. Exports from several Gulf producers have already collapsed due to the restricted flow.
Brent crude futures rose $1.74, or 1.6%, to $111.51 a barrel by 0530 GMT, while U.S. West Texas Intermediate crude futures climbed $3.45, or 3.1%, to $115.86. The conflict has tightened global crude supply, pushing spot premiums for U.S. WTI crude to record highs as Asian and European refiners scramble for replacement supplies amid disrupted Middle Eastern flows.
Tehran has rejected calls for a ceasefire and insists a permanent end to the war is necessary, pushing back against pressure to reopen the strait. The UN Security Council is expected to vote on a resolution aimed at protecting commercial shipping in the strait, though the measure has been significantly weakened after China opposed authorising the use of force.
Attacks in the region continued with explosions heard in Damascus and surrounding areas on Tuesday, caused by Israeli interception of Iranian missiles, Syrian state television reported. Saudi Arabia said it intercepted and destroyed seven ballistic missiles launched toward its Eastern Region, with debris falling near energy facilities.
Saudi Arabia’s state oil company Aramco raised the official selling price of its Arab Light crude to Asia for May delivery, setting a record premium of $19.50 a barrel above the Oman/Dubai average.
The standoff over the strait and ongoing regional hostilities have intensified supply concerns, keeping oil markets on edge as the deadline looms.
