Oil prices rise after Trump issues ultimatum and Iran threatens to close the Strait of Hormuz indefinitely
CNN • • business
Key Points:
- Oil prices surged on Sunday as Iran threatened to indefinitely shut down the Strait of Hormuz in retaliation to President Trump's ultimatum demanding the reopening of the critical oil shipping route.
- Brent crude rose 1.69% to about $114.09 per barrel, while US crude increased 2% to $100.29, with Goldman Sachs predicting elevated prices could persist through 2027.
- President Trump warned of obliterating Iran’s power plants if the strait remained closed by Monday evening, prompting Iran to vow a complete shutdown until destroyed infrastructure is rebuilt and to target US and Israeli energy assets.
- The ongoing conflict in Iran, now in its fourth week, has disrupted global oil supplies due to the strait’s effective closure, causing US gas prices to climb nearly $1 since the war began, with prices expected to reach $4 per gallon.
- Stock futures declined Sunday amid market concerns, with Dow, S&P 500, and Nasdaq futures dropping between 0.6% and 0.8%, while Treasury Secretary Scott Bessent emphasized Americans’ willingness to endure temporary high prices for long-term Middle East peace.
