Newsletters
Oil prices further increased Tuesday as markets remained concerned over a looming deadline, after U.S. President Donald Trump threatened to expand strikes on Iran if the Strait of Hormuz is not reopened.
U.S. benchmark WTI climbed to $115.4 per barrel as of 8 a.m. GMT, rising more than 2.6% on the day, while Brent crude increased by 1.7% to $111.6 per barrel, further compressing and reversing the typical price gap between the two benchmarks.
WTI’s move above Brent marks an uncommon shift, pointing to urgent demand for oil available in the near term. Buyers leaned toward U.S. crude as shipping risks and regional disruptions weighed on seaborne supplies.
Tensions remain elevated as the war in the Middle East entered its sixth week. U.S. President Donald Trump warned that Iran’s civilian infrastructure could be targeted if Tehran fails to reopen the Strait of Hormuz.
Through the narrow waterway passes roughly one-fifth of global crude oil and gas, and since the start of the war, disruptions to vessel traffic in the strait have driven both oil and gas prices up by more than 50%. Beyond curtailed traffic, Iran’s push to tighten control over the strait, alongside preparations to introduce a toll system for passing ships, has further alarmed regional countries.
Trump framed the ultimatum in stark terms during a press conference, stating that "the entire country" of Iran "could be taken out in one night," adding that such action could come as soon as the following night if the strait remained closed.
Both Washington and Tehran indicated that a proposed 45-day ceasefire backed by international mediators was not yet finalized, leaving markets exposed to further escalation.
Equity markets delivered a mixed performance across regions. Japan’s Nikkei 225 closed flat at 53,429.56, while South Korea’s KOSPI rose 0.82% to 5,494.78. Hong Kong’s Hang Seng index slipped 0.7%, while China’s Shanghai Composite edged up 0.3%.
Türkiye’s Borsa Istanbul opened flat at 13,108.45 points.
In Europe, major indices posted modest gains, with the Stoxx Europe 600 up 0.2%, Germany’s DAX 30 rising 0.1%, the U.K.’s FTSE 100 gaining 0.2%, France’s CAC 40 climbing 0.5%, and Spain’s IBEX 35 advancing 0.3%.
U.S. futures pointed lower, with the tech-heavy Nasdaq slipping 0.3%.
Precious metals showed limited movement, with gold at $4,645 per ounce and silver at $72.3. Palladium and platinum hovered at $1,457 and $1,939, respectively. In cryptocurrency markets, bitcoin eased 0.5% to $68,840, while ethereum dropped 1% to $2,110, partially reversing earlier gains.
Set as preferred source
Set as preferred source
1 min read
1 min read
