Oil prices rise as Trump’s Iran ultimatum deadline nears

U.S. benchmark crude, West Texas Intermediate, climbed 2.44% to US$115.15 per barrel on Tuesday amid ongoing uncertainty over Donald Trump’s ultimatum to Iran to reopen the Strait of Hormuz.

Futures rose from the previous close of US$112.41 as markets reacted to the approaching deadline and escalating rhetoric. Trump reiterated his warning on Truth Social, suggesting severe consequences if no agreement is reached, while also acknowledging that negotiations may still be ongoing.

Despite the tensions, the president indicated that Iran appears to be negotiating “in good faith,” though any agreement must include reopening the Strait of Hormuz, a key route that handles roughly 20% of global oil shipments.

Analysts warn that uncertainty remains high, with possible outcomes ranging from a negotiated deal to further escalation. The situation continues to drive volatility in global energy markets as investors monitor developments closely.