Business
Oil prices climb as Hormuz stays shut ahead of Trump deadline
The conflict has squeezed global crude supply, sending spot premiums for U.S. WTI crude surging to record highs
A man refuels the tank of a motorcycle at a petrol station in Manila on April 7, 2026.
Dubai: Oil prices extended gains on Tuesday as a U.S.-imposed deadline loomed for Iran to open the Strait of Hormuz or be "taken out", with U.S. President Donald Trump threatening to order attacks on Iranian bridges and power plants.
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 were up $3.45, or 3.1%, at $115.86.
Trump has threatened to rain "hell" on Tehran if it fails to comply with his deadline of 8 p.m. EDT Tuesday (0000 GMT Wednesday) to reopen the strait, through which about a fifth of global oil supply is normally shipped, if a deal is not reached.
Responding to a U.S. proposal through mediator Pakistan, Tehran rejected a ceasefire and said a permanent end to the war was necessary, and pushed back against pressure to reopen the strait.
"Clock-watching is now playing almost as big a role in oil markets as the fundamentals themselves in the run-up to Trump's ultimatum deadline," said Tim Waterer, chief market analyst at KCM Trade.
Supply worries
"The potential for a ceasefire deal offers some counterweight and could spark a relief move lower if it gains traction, but persistent supply worries from the Hormuz chokepoint and damaged energy facilities are keeping the floor under prices."
The U.N. Security Council is expected to vote on Tuesday on a resolution to protect commercial shipping in the Strait of Hormuz, but in significantly watered-down form after veto-wielding China opposed authorizing force, diplomats said.
The conflict has squeezed global crude supply, sending spot premiums for U.S. WTI crude surging to record highs.
OPEC+ agreed on Sunday to lift oil output quotas by 206,000 bpd in May, though the increase will be largely notional as key members cannot boost production because strait closures are curbing exports.