Oil markets wavered Monday as President Donald Trump gave Iran until Tuesday to reopen the Strait of Hormuz or face attacks on its power plants and bridges. U.S. West Texas Intermediate for May fell about 2% to $109.70 per barrel, while Brent crude dropped roughly 1% to $108.30 per barrel.
Trump posted a warning on social media, saying Iran would be “living in Hell” if it did not comply. He later added, “Tuesday, 8:00 P.M. Eastern Time!” without further clarification. The Strait remains effectively closed, as Iranian attacks on oil tankers continue, blocking a sea route that previously carried about 20% of the world’s oil supply.
Analysts say the disruption is the largest in history. TD Securities estimates that nearly 1 billion barrels of crude and refined products could be lost by the end of the month, while Rapidan Energy projects a net loss of 630 million barrels by June when accounting for emergency stockpile releases and redirected flows.
OPEC+ agreed to raise production by 206,000 barrels per day for May, but the group cautioned that repairing infrastructure damaged in Iranian attacks will be costly and slow, limiting how much additional oil reaches global markets. Kuwait Petroleum Corporation reported drone strikes on several facilities, adding to supply concerns.
With the Strait still closed, the conflict continues to strain energy markets, leaving prices sensitive to every geopolitical development in the region.
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