London (Commerce Desk) – Following a stern 48-hour ultimatum issued by former U.S. President Donald Trump to Iran, global oil markets have witnessed a sharp surge in prices, raising concerns about a looming global energy crisis.
According to reports, U.S. crude oil prices increased by 2.35%, surpassing $114 per barrel, while benchmark global oil prices also climbed above $110 per barrel.
In his statement, Trump warned Iran to reopen the Strait of Hormuz by Tuesday, cautioning that failure to comply would lead to serious consequences. He also threatened potential strikes on Iranian installations, further escalating tensions in the region.
Meanwhile, Iran has effectively restricted the Strait of Hormuz following reported attacks on oil tankers, disrupting one of the world’s most critical oil transit routes. This passage connects the Persian Gulf to global markets and is a key channel for a significant portion of the world’s oil supply.
Experts warn that the situation has triggered a severe supply crisis, leading to rapid increases not only in crude oil prices but also in other fuel costs. Financial institutions have also cautioned that global oil supply could decline significantly by the end of the month, potentially impacting the global economy.
Analysts suggest that tensions may persist for several weeks, keeping markets volatile and uncertainty high.
