Global energy markets were thrown into turmoil after US President Donald Trump threatened military action against Iran over access to the Strait of Hormuz.
In a strongly worded social media post on Sunday, Trump warned that the United States could target key Iranian infrastructure, including power plants and bridges, if Tehran fails to reopen the critical waterway to international shipping by late Tuesday (US time).
The Strait of Hormuz, a vital corridor for global oil and gas shipments, has seen severe disruptions in recent days, as Iran reportedly threatened to attack vessels attempting to pass through in response to ongoing US and Israeli airstrikes since late February.
The escalating tensions sent oil prices sharply higher, with Brent crude briefly climbing above $110 per barrel before easing amid reports of potential diplomatic engagement. By midday in Asia, Brent was trading around $109.80, while US crude hovered near $111.62.
Market volatility has been driven by uncertainty over whether energy supplies from the Gulf region can resume, with analysts warning that prices could continue to fluctuate based on developments in the conflict.
A report by Axios suggested that the US and Iran, alongside regional mediators, are exploring the terms of a possible 45-day ceasefire that could pave the way for a longer-term resolution. However, the report remains unverified, and the White House has yet to issue an official response.
