Oil prices climbed on Monday after Donald Trump threatened military action against Iran’s power infrastructure if Tehran fails to reopen the strategically vital Strait of Hormuz within 48 hours.
The international benchmark Brent crude rose to $108.71 per barrel, marking a 2.2% increase from its previous close of $106.41. Meanwhile, U.S. benchmark West Texas Intermediate (WTI) gained 2.3% to trade at $100.48 per barrel, up from $98.23 in the prior session.
The ongoing U.S.-Israeli military campaign against Iran has now entered its 24th day, with growing indications that the conflict could persist longer than initially anticipated.
Over the weekend, Trump reiterated his warning, stating that the U.S. would carry out targeted strikes on Iran’s power plants if the country does not fully reopen the Strait of Hormuz within the stated deadline.
On March 21, Trump issued a 48-hour ultimatum, declaring that failure to comply would result in the U.S. “obliterating” Iranian power facilities, “starting with the largest.”
In a related development, the U.S. is reportedly weighing a potential ground operation to seize Kharg Island, Iran’s primary oil export hub. As part of these preparations, thousands of U.S. Marines and Navy personnel are being rapidly deployed to the Middle East.
Kharg Island accounts for roughly 90% of Iran’s oil exports, making it a critical asset in the country’s energy infrastructure.
In response, Iran has warned it would retaliate by targeting regional energy facilities, including those linked to the U.S. and Israel, should its own infrastructure come under attack. Tehran also reiterated its threat to shut down the Strait of Hormuz entirely if strikes are carried out.
Analysts at Fitch Ratings caution that any prolonged disruption to the strait could significantly impact global oil markets. According to their projections, a six-month closure could push Brent crude prices to an average of $120 per barrel in 2026, while a three-month disruption could see prices stabilize around $100 per barrel.
