Oil prices logged wild swings in early Asian trade on Monday, but remained close to recent peaks after U.S. President Donald Trump issued a 48-hour deadline for Iran to reopen the Strait of Hormuz.
Brent oil futures opened as much as 2% higher at $114.35 a barrel, before reversing course to trade down 0.2% at $112.0 a barrel by 19:16 ET (23:16 GMT).
Trump on Saturday evening said Iran had 48 hours to reopen the Strait of Hormuz, or else the U.S. would “obliterate” critical energy infrastructure in the country.
Iran said it would retaliate to U.S. aggression by completely closing the Strait of Hormuz and attacking energy and water systems in its surrounding Gulf neighbors. Reports showed the country launching fresh strikes on Israel in the early hours of Monday.
Trump’s threat came just a day after reports said he was considering “winding down” the war with Iran, even as Washington continued to deploy more troops and ships to the Middle East.
Iran has kept the Strait of Hormuz effectively blocked since the U.S.-Israel war on Tehran began in late-February. The move sparked widespread disruptions in global oil supplies, given that roughly 20% of the world’s oil consumption passes through the shipping lane.
Oil had jumped to nearly $120 a barrel earlier in March, and has remained close to the level amid growing concerns that a prolonged conflict will greatly disrupt global supplies.
source https://www.investing.com/news/commodities-news/oil-prices-volatile-pinned-above-110bbl-after-trumps-48hr-deadline-on-iran-4574162
