Oil rises as Trump warns Iran to open Strait of Hormuz by Tuesday
CNBC • • general
Key Points:
- Oil prices rose on Sunday, with U.S. crude surpassing $114 per barrel, following President Trump's ultimatum to Iran to reopen the Strait of Hormuz by Tuesday or face attacks on its power plants.
- Trump threatened Iran with bombings of power plants and bridges if the Strait remains closed, intensifying tensions in the region amid ongoing attacks on oil tankers that have effectively blocked the vital shipping route.
- The closure of the Strait of Hormuz has caused the largest oil supply disruption in history, leading to significant surges in crude, jet fuel, diesel, and gasoline prices worldwide.
- OPEC+ members agreed to increase oil production by 206,000 barrels per day in May, but concerns remain over how the additional supply will reach global markets given the Strait's closure and damage to energy infrastructure from Iranian attacks.
- Analysts project nearly 1 billion barrels of oil and refined products will be lost by the end of the month due to the conflict, with repair costs and supply availability further impacted by ongoing damage to facilities in the region.
