Oil Rises Ahead of Trump Deadline, Hormuz Risk Remains Locked
Oil prices rallied again ahead of US President Donald Trump's 8:00 PM ET deadline on Tuesday for Iran to reopen the Strait of Hormuz. WTI briefly climbed to around US$116.7/barrel, while Brent held above US$110/barrel amid rising supply risk premiums.
The rise followed reports of a US attack on military targets on Kharg Island, an Iranian oil export hub, although US officials stated that oil infrastructure on the island was not targeted. However, direct military action continues to raise concerns about supply disruptions, as Hormuz remains blocked, a waterway that typically carries about a fifth of global oil flows.
Trump emphasized the consequences if Iran does not meet demands—including the opening of Hormuz and a cessation of hostilities—and signaled that the door to diplomacy remains open. With negotiations yet to show a breakthrough, energy markets remain priced in for an escalation scenario, potentially leaving oil prices volatile until there is certainty regarding Hormuz and the next military action.
Source: Newsmaker.id