WTI crude futures surged to as high as $115.50 per barrel on Monday before paring gains, after President Donald Trump issued a new ultimatum to Iran and escalated threats against its civilian infrastructure if it failed to reopen the Strait of Hormuz. Trump vowed to bring “Hell” to Iran and set a fresh deadline for Tuesday at 8 p.m. Eastern Time, while also signaling plans for a news conference at 1 p.m. on Monday. Tehran rejected the latest demand, leaving the Strait of Hormuz—an essential corridor for roughly one-fifth of global oil and gas shipments—effectively closed.
Separately, OPEC+ warned after a weekend meeting that war-related damage to energy infrastructure could have lasting effects on oil supply even after hostilities ease. The group approved an increase in output quotas to help mitigate the global supply shortfall, although Iran indicated on Saturday that Iraq would be exempt from its restrictions in the strait.
