Oil prices rose as President Trump intensified threats against Iran, warning of potential military action if the country does not reopen the crucial Strait of Hormuz. As of 8:45 p.m. ET, U.S. West Texas Intermediate crude futures climbed 0.93% to $113.46 per barrel, while Brent crude for June delivery increased 0.54% to $110.36 per barrel. The ongoing conflict has already led to significant supply disruptions, pushing energy prices higher across the board.
The situation is critical for the energy sector, as the Strait of Hormuz is a vital passage for about 20 million barrels of oil daily. Although shipping activity is slowly increasing, with eight tankers transiting Monday compared to fewer than two per day in March, this remains far below pre-war levels. The market is reacting to the uncertainty surrounding negotiations between the U.S. and Iran, which could impact supply stability and pricing.
Market professionals should closely monitor developments in this geopolitical landscape, as any escalation or resolution will significantly influence oil prices and broader market sentiment.
Source: cnbc.com