Global oil prices surged after U.S. President Donald Trump issued a 48-hour ultimatum to Iran to reopen the Strait of Hormuz. Trump threatened the decimation of Iran's energy infrastructure if the country fails to comply. This escalation occurred during the fourth week of the regional conflict.
Brent crude for May delivery jumped to $113.44 per barrel. West Texas Intermediate crude surpassed the $100 per barrel threshold. Both benchmarks rose approximately 1.8% in early trading.
The Strait of Hormuz handles approximately 20% of global oil and gas transit. Markets reacted to the heightened risk of supply disruptions and a wider regional conflict.