Global oil prices moved higher this week as tensions between the United States and Iran intensified ahead of a deadline tied to the Strait of Hormuz, a key global shipping route.
Brent crude traded above US$111 per barrel in early sessions before easing below US$108 and then climbing again to around US$110. Market volatility followed statements from Donald Trump, who warned of swift military action if Iran fails to reach an agreement with Washington.
Last week, Brent hovered around US$109.
Speaking ahead of a Tuesday deadline on Truth Social, Trump threatened to take out Iran “in one night” if a deal is not reached. He also wrote on social media, “A whole civilization will die tonight, never to be brought back again. I don’t want that to happen, but it probably will.”
The last time oil prices were this high was the 2022 Ukraine war | OilNOW
The Strait of Hormuz remains central to market concerns, as it serves as passage for a significant share of global oil exports.
Daniel Yergin, Vice Chairman of S&P Global, described the situation as unprecedented. He said the disruption in tanker traffic through the Strait of Hormuz represents “the largest disruption to global oil production ever recorded.”
The conflict has drawbacks for Guyana which has experienced a 38.5% jump in gasoline import prices, sending up costs for consumers.
