Oil Jumps as Trump Raises Pressure on Iran With Hormuz Still Blocked
BBC Business reported Monday that oil prices climbed sharply in Asian trading after US President Donald Trump escalated his rhetoric toward Iran amid stalled Iran peace talks.
Brent crude, the global benchmark, rose nearly 1.9% to $111.28 per barrel. US-traded oil advanced more than 2.3% to $107.87. Both moves reflected fresh anxiety over Persian Gulf supply routes.
Trump Turns Up the Pressure on Tehran
Trump issued a blunt social media warning to Iranian leaders over the weekend, insisting they needed to act quickly or face severe consequences. He described the situation as urgently time-sensitive and called for fast movement from the Iranian side.
The statement followed his claim last week that an early-April ceasefire was on “massive life support.” Trump had already rejected Iran’s latest negotiating demands as completely unacceptable. Axios reported that the president plans to meet senior national security advisers Tuesday to weigh military options against Iran.
Iranian state-adjacent media pushed back. The semi-official Mehr news agency said Washington had offered no meaningful concessions in its formal reply to Tehran’s proposals. The outlet warned that without compromise, negotiations would reach a dead end.
How the Hormuz Crisis Remade Energy Markets
The disruption traces back to late February, when US and Israeli forces struck Iran directly. Tehran responded by effectively shutting down the Strait of Hormuz, the narrow waterway through which roughly one-fifth of global oil and liquefied natural gas normally flows. That closure has kept energy markets volatile for weeks.
Iran has also widened its military campaign regionally, launching strikes against Israel, Bahrain, and the United Arab Emirates. On Sunday, the UAE reported that a drone had struck an electrical generator near the perimeter of the Barakah Nuclear Power Plant outside Abu Dhabi. Two other drones were intercepted. No injuries occurred and authorities said radiological safety was not compromised. The UAE called the incident a dangerous escalation and said the drones appeared to have crossed from the western border.
What Markets Are Watching Now
Traders are treating Tuesday’s White House security meeting as a key signal. A decision to resume or intensify military action could tighten supply further and push prices higher still. Conversely, any sign of diplomatic progress would likely ease the premium built into current prices.
European airline executives have already warned that higher jet fuel costs tied to the Iran conflict will inevitably lift air fares. Broader consumer price pressures from elevated energy costs remain a concern for central banks navigating an already uncertain growth environment.
