By Blessing Nweke
Oil markets experienced choppy trading in Asia on Monday after Donald Trump escalated tensions with Iran, threatening to destroy key infrastructure unless Tehran reopens the Strait of Hormuz to global shipping.
In a profanity-filled social media post on Sunday, Trump warned the United States would target Iranian power plants and bridges if the strategic waterway is not reopened by Tuesday. The strait is a critical route for global energy supplies, carrying roughly a fifth of the world’s oil shipments.
Benchmark Brent crude briefly surged above $110 per barrel before paring gains following reports of potential diplomatic progress. According to Axios, officials from the US, Iran, and regional mediators are discussing terms for a possible 45-day ceasefire that could pave the way for a broader resolution.
By late morning in Asia, Brent crude was up 0.7% at $109.80, while US crude hovered near $111.62.
The volatility comes amid escalating conflict in the region. Since late February, Iran has threatened to attack vessels attempting to transit the strait in response to US and Israeli airstrikes. Over the weekend, Tehran claimed responsibility for strikes on petrochemical facilities in Kuwait, Bahrain, and the United Arab Emirates.
Iran’s Islamic Revolutionary Guard Corps warned on Monday that attacks on US economic interests would intensify if civilian infrastructure continues to be targeted.
Meanwhile, OPEC+—including major producers such as Saudi Arabia and Russia—announced a modest production increase of 206,000 barrels per day for May. However, analysts say the boost may have limited impact due to ongoing disruptions.
Despite his aggressive rhetoric, Trump told Fox News there remains a “good chance” of reaching a deal, though he added military action remains under consideration if talks fail.
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