Oil Prices Volatile Amid Iran Tensions and Geopolitical Risks

Oil prices rise as Iran threatens to close Strait of Hormuz indefinitely Oil prices rose on Sunday after Iran threatened to shut the Strait of Hormuz indefinitely in response to an ultimatum from U.S. President Donald Trump regarding the resumption of oil flows through the vital waterway. Brent crude, the global benchmark, climbed 1.69% to approximately $114.09 per barrel, while West Texas Intermediate increased by 2% to reach $100.29 per barrel. Goldman Sachs noted on Friday that these elevated prices could persist through 2027. Iran warned it would fully close the Strait of Hormz if Trump carried out his threat, stating it would not reopen the passage until any destroyed power generation facilities were rebuilt. Tehran also said it would target U.S. And Israeli energy and communications infrastructure in the region. Trump had declared over the weekend that the United States would destroy Iranian power generation stations if the strait remained closed by Monday evening. The conflict in Iran, now entering its fourth week, has caused significant disruption to oil supplies, largely due to the effective closure of the strait, one of the world’s busiest oil shipping chokepoints.