Trump Warning on Iran Deadline Sends Oil Prices Up
Trump Warning on Iran Deadline Sends Oil Prices Up
Trump reiterates a Tuesday deadline to reopen the Strait of Hormuz, sparking volatility as oil prices rise and shipping disruptions linger.
President Trump on Tuesday warned Iran with an 8 p.m. deadline to reopen the Strait of Hormuz, a move that has traders watching energy flows closely. He said, 'I don’t want that to happen, but it probably will,' signaling a potential escalation as tensions over the Gulf chokepoint intensify. The warning comes amid a fragile balance between threats and diplomacy as the Straits remain a critical artery for global oil shipments.
Oil prices moved higher on the news, with traders weighing the risk of renewed conflict against the prospect of stabilized supply. Reports of ongoing disruptions to energy facilities and Iran’s rejection of a ceasefire have kept markets on edge, even as shipping lines begin to resume some activity through Hormuz. The UN Security Council’s impending vote on a resolution concerning commercial shipping in the strait adds another layer of uncertainty for traders.
Shipping through the Strait of Hormuz has slowly resumed, with eight tankers transiting Monday, up from the average of fewer than two transits per day in March, according to S&P Global Market Intelligence. That, however, is a fraction of prewar levels, with an average of 20 million barrels of crude oil and products transiting the strait per day in 2025. 'It is an improvement at the margin in terms of flows from [the Strait of Hormuz],' said Michael Wan, senior currency analyst at MUFG Research, noting that the path toward peace remains 'narrow and unlikely' given the wide gap in expectations among different parties in the conflict. A full resumption of traffic through the strait would still take some time for the actual supply to flow through to Asian economies facing imminent energy shortages, said Wan, who expects a timeline of 'at least 3 to 6 months.'
The Economic Times notes that oil prices extended gains as Trump sharpened rhetoric on Iran, with Iran rejecting a ceasefire and demanding a permanent end to the war, while disruptions to energy facilities continue to support prices. The looming UN vote on shipping in the strait underscores how intertwined geopolitical risk and energy markets remain. Analysts caution that any misstep could reverberate through global energy markets for months, even as markets hope for de-escalation and renewed negotiation efforts.
