Oil prices rose sharply Monday after President Donald Trump warned Iran that “the clock is ticking” as negotiations over ending the conflict in the Middle East appeared to stall. Markets across Asia retreated while investors reacted to renewed fears over energy supplies and shipping disruptions in the Strait of Hormuz.
The rise in crude prices added to concerns about inflation, transportation costs, and broader market volatility. According to the BBC, Brent crude climbed to $111.13 per barrel while U.S. crude reached $107.62, extending gains linked to the ongoing conflict involving Iran, Israel, and the United States.
The latest developments came as tensions surrounding the Strait of Hormuz continued to dominate global markets. Roughly one-fifth of the world’s oil and liquefied natural gas shipments usually pass through the narrow waterway, which Iran effectively closed following strikes that began on February 28.
President Trump intensified pressure on Tehran in a social media post, writing that Iranian leaders “better get moving, FAST, or there won’t be anything left of them.” According to the Associated Press, Trump made the remarks after a call with Israeli Prime Minister Benjamin Netanyahu.
Energy Markets React as Strait of Hormuz Disruption Continues
Oil markets have remained highly volatile since shipping through the Strait of Hormuz was disrupted. According to the BBC, Iranian media reported that Washington had failed to offer “concrete concessions” in response to Tehran’s latest proposals aimed at ending the conflict. The semi-official Mehr news agency warned that the negotiations could reach an “impasse.”
The uncertainty pushed energy prices higher across global markets. Brent crude rose roughly 0.7% in early trading Monday, according to AP, while U.S. benchmark crude gained about 0.8%. Prices had been near $70 per barrel before the conflict began earlier this year.
Analysts said the situation around the strait remained unstable despite signs of increased shipping activity in recent days. ING commodities strategists Warren Patterson and Ewa Manthey said “re-escalation risks are increasing,” according to AP, adding that conditions could change quickly around the key trade route.
Claudio Galimberti, chief economist at Rystad Energy, also warned of prolonged economic strain. According to the BBC, Galimberti said the global economy was approaching a “summer of pain” unless the Strait of Hormuz reopens. The impact has spread beyond energy markets. Airlines, shipping firms, and investors have all faced rising costs linked to fuel and transport uncertainty during the conflict.
Airlines, Stock Markets, and Regional Tensions Face Growing Pressure
Several Asian stock markets declined Monday as investors weighed the possibility of further escalation in the Middle East. Hong Kong’s Hang Seng index fell 1.4%, while Japan’s Nikkei 225 dropped 1%, according to AP. Australia’s S&P/ASX 200 also lost 1.5%.
Bond markets reflected similar concerns. The yield on Japan’s 10-year government bond rose to 2.8%, its highest level since the late 1990s, amid expectations that higher energy prices could fuel inflation.
Airlines also acknowledged the growing pressure from fuel costs. Ryanair said the conflict had created “economic uncertainty” and that it remained unclear when the Strait of Hormuz would reopen. According to the BBC, the airline had fixed prices for 80% of its future jet fuel purchases, though costs for the remaining portion had increased sharply because of the conflict.
Regional security concerns intensified after the United Arab Emirates reported a drone strike near the Barakah Nuclear Power Plant over the weekend. UAE authorities said one drone struck an electrical generator outside the facility’s inner perimeter, causing a fire. Officials said there were no injuries and no impact on radiological safety levels.
