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Energy Supply · Geopolitics · Iran · Oil
Oil prices increased on Tuesday as US President Donald Trump's ultimatum for Iran to reopen the Strait of Hormuz or face military strikes on its power plants and bridges approached its 8 p.m.
ET deadline. International benchmark Brent crude futures traded at $109.97 per barrel, up 0.2% from the previous close, while US benchmark West Texas Intermediate (WTI) rose 0.5% to $112.93 per barrel.
Regional tensions escalated significantly following a joint US-Israel offensive on Iran on February 28, which reportedly killed over 1,340 people, including then-Supreme Leader Ayatollah Ali Khamenei. In retaliation, Iran has conducted drone and missile strikes against Israel, Jordan, Iraq, and Gulf countries, concurrently restricting ship movements through the critical Strait of Hormuz.
Israel has approved an updated list of energy and infrastructure targets in Iran, awaiting Trump's decision, according to a CNN report. The International Energy Agency (IEA) chief Fatih Birol stated the Middle East war has caused the largest oil supply loss in history, exceeding the 1973 crisis, prompting the release of 400 million barrels from strategic reserves.
Analyst Osama Rizvi warns of a historic global supply shock if US threats against Iran's energy infrastructure materialize. Iraq has already cut its Basra oil output by 70% due to war conditions, and countries like Bangladesh and the Philippines face deepening fuel shortages.
