Oil surges as Trump threatens Iran strikes over Strait of Hormuz

Oil markets jolted higher on Sunday as President Trump escalated his confrontation with Iran, threatening to strike the country's power generation and bridge infrastructure unless the Strait of Hormuz reopened by Monday. Brent crude, the global pricing standard, climbed 1.4 percent to $110.60 a barrel. West Texas Intermediate crude rose 1.8 percent to $113.60. The moves reflected trader anxiety about a potential disruption to one of the world's most critical energy chokepoints.

Trump's ultimatum came via Truth Social, his preferred platform for major policy announcements. The language was characteristically blunt and inflammatory. He promised that Tuesday would bring simultaneous strikes on Iranian power plants and bridges, framed as an unparalleled show of force. The post concluded with a demand to reopen the strait, accompanied by threats of severe consequences. The tone and specificity suggested this was not rhetorical posturing but a genuine deadline.

This was not Trump's first attempt to pressure Iran on the strait. He had issued a similar two-day ultimatum on March 21, only to extend it when the deadline passed without Iranian compliance. The pattern suggested either a willingness to negotiate through repeated threats or a calculation that Iran would eventually capitulate. The latest ultimatum, however, came with explicit military targets named and a compressed timeline.

Iran's response, delivered through a senior government official on Sunday, indicated no immediate retreat. The country would not reopen the strait, the official stated, until receiving full compensation for war damages. The position hardened the standoff rather than creating space for negotiation. Simultaneously, Oman—a regional mediator with ties to both sides—convened discussions with Iranian officials about allowing maritime traffic through the waterway, suggesting diplomatic channels remained open even as rhetoric escalated.

The geopolitical tension rippled through global energy markets and beyond. OPEC+, the coalition of oil-producing nations, held a virtual meeting on Sunday and expressed formal concern about potential attacks on energy infrastructure. The group had just agreed to increase daily output by 206,000 barrels beginning in May, a move intended to stabilize prices. But the officials acknowledged that restoring production capacity after infrastructure damage would be costly and time-consuming—a tacit recognition that military strikes could undo their supply-management efforts.

Stock markets, closed on Friday, faced headwinds as Sunday evening trading began. Dow futures fell 0.69 percent, or 324 points. The S&P 500 futures declined 0.76 percent. Nasdaq futures dropped 0.91 percent. The declines reflected broader investor unease about geopolitical risk and its potential to disrupt both energy supplies and economic growth. The threat to Iranian facilities was not abstract; it carried immediate implications for global commerce and consumer prices.

The Strait of Hormuz itself remained the central prize and pressure point. Through this narrow waterway between Iran and Oman flows roughly one-third of the world's seaborne oil trade. Any sustained closure or disruption would send shockwaves through global energy markets and economies dependent on affordable fuel. Trump's threat to strike Iranian infrastructure was, in effect, a threat to weaponize the strait's strategic importance—to use military force to compel Iranian compliance with American demands. Whether Iran would yield to the pressure, whether Trump would follow through on the threat, and what the broader consequences might be remained open questions as markets braced for Monday's developments.