WTI crude futures rose to around $106 per barrel on Tuesday, putting them on track for a record monthly gain of roughly 60%, as the ongoing conflict in the Middle East continued to roil global energy markets. In the latest escalation, President Donald Trump threatened strikes on Iran’s power plants, oil facilities, and desalination infrastructure if the Strait of Hormuz is not reopened. Those remarks overshadowed his earlier indications that a deal with Iran might be close, even as the United States deployed additional troops to the region.
Meanwhile, Iran-backed Houthi forces in Yemen expanded the conflict over the weekend by targeting Israel, and Tehran is reportedly pressing allied militant groups to prepare for a renewed campaign aimed at disrupting shipping in the Red Sea. These developments heighten the risk of further tightening in global energy supplies, as two of the world’s most critical maritime chokepoints for trade and energy flows could be partially or fully cut off.
