Strait of Hormuz tensions tighten global crude flows, pushing prices higher and rattling energy markets….
Global oil prices climbed further on Tuesday as tensions escalated over Iran’s control of the Strait of Hormuz, with markets bracing for potential disruption to one of the world’s most critical oil transit routes.
The surge comes ahead of a high-stakes deadline issued by Donald Trump, who warned Tehran to reopen the strait or face severe military consequences. He threatened strikes targeting Iranian infrastructure including bridges and power facilities if the ultimatum, set for 8 p.m. EDT Tuesday (midnight GMT Wednesday), is ignored.
Roughly 20% of global oil supply typically flows through the narrow channel, making any restriction a major concern for energy markets. Already, exports from key Gulf producers have dropped sharply as traffic through the strait remains constrained.
Oil benchmarks reflected the growing anxiety. Brent crude rose by $1.74, or 1.6%, to $111.51 per barrel, while U.S. West Texas Intermediate (WTI) jumped $3.45, or 3.1%, to $115.86.
Tehran has shown no signs of backing down. Iranian officials rejected calls for a ceasefire, insisting that only a permanent resolution to the conflict would be acceptable. They also resisted mounting international pressure to reopen the vital shipping lane.
The standoff follows weeks of escalating hostilities. Iranian forces effectively closed the strait after U.S. and Israeli strikes began on February 28, dramatically tightening oil flows from the Middle East.
Diplomatic efforts are ongoing but uncertain. The United Nations Security Council is expected to vote on a resolution aimed at safeguarding commercial shipping in the strait. However, the proposal has reportedly been diluted after opposition from China, which objected to any authorization of military enforcement.
Meanwhile, the conflict continues to ripple across the region. Explosions were reported in Damascus and surrounding areas, attributed to Israeli interceptions of Iranian missiles, according to Syrian state media.
Saudi Arabia also confirmed it intercepted and destroyed seven ballistic missiles targeting its Eastern Region, with debris falling near key energy infrastructure, an incident that further underscores the vulnerability of oil supply chains.
In response to tightening supply, Saudi oil giant Saudi Aramco raised the official selling price of its Arab Light crude for May deliveries to Asia, setting a record premium of $19.50 per barrel above the Oman/Dubai benchmark.
The ongoing conflict is placing intense pressure on global energy markets. Spot premiums for U.S. crude have surged to unprecedented levels, as refiners in Asia and Europe scramble to secure alternative supplies amid disrupted Middle Eastern exports.
With tensions showing little sign of easing, traders remain on edge aware that any further escalation could send oil prices even higher and deepen the strain on global supply.
