Oil prices extend gains in early Asian trading on Monday after President Donald Trump sharply increased threats against Iran. He promised to attack power plants and bridges if Tehran does not reopen the Strait of Hormuz no later than Tuesday.

This latest ultimatum signals a conflict that has already been ongoing for six weeks is now entering a more dangerous phase, with no peaceful path in sight.
Trump’s ultimatum: ‘Power Plant Day, and Bridge Day’
In a social media post, Trump said Tuesday would be “Power Plant Day and Bridge Day” and demanded that Iran “open the f—ing strait,” warning Tehran it will be “living in Hell.” This unprecedented language signals growing frustration from Washington, as diplomacy to resolve the standoff over this important waterway remains deadlocked.
Brent jumped through US$111 per barrel, up 1.9%, while West Texas Intermediate was traded near US$112 during the morning session in Asia. Tehran rejected the demands, and the Strait of Hormuz remained closed to most shipping traffic. This war has caused a supply shock that now threatens to fully transform into a global energy crisis.
Rising oil and fuel prices are now driving inflation, slowing economic growth, and putting pressure on businesses and consumers around the world. Gasoline prices in the United States have risen by about US$1 per gallon since the conflict began. Analysts expect March consumer price index data to be released on Friday to show the sharpest month-on-month increase since 2022.
OPEC+ members agreed to add a small amount of production—206,000 barrels per day for May—after a meeting over the weekend. But the move is more symbolic, because major producers cannot increase output due to the war. Supplies from Russia are also disrupted because Ukrainian drone attacks on Russia’s export terminals in the Baltic Sea.
Market pressure indicators now show danger signs. The prompt spread for Brent has widened by more than US$10 per barrel under backwardation conditions. This spread exceeds the peak seen during Russia’s invasion of Ukraine in 2022. Even physical market prices point to a worse situation. Dated Brent surged above US$140 per barrel, reaching a level last seen in 2008.
Diplomacy Stalls and Attacks Continue
Iran has officially informed mediators that it will not meet U.S. officials in Islamabad, and efforts to broker a ceasefire have stalled. Tehran only allows a number of ships from certain countries deemed friendly to transit the Strait of Hormuz. Iraq received an exception from Iran’s restrictions on shipping, although vessel operators remain cautious when entering the strait. Oman said it has discussed various options with Tehran to restore shipping traffic.
Global buyers are now competing aggressively to find alternative oil supplies from the U.S. Gulf Coast and the North Sea. Israel’s attacks on Iran continue over the weekend, while Tehran carries out strikes on the headquarters of Kuwait Petroleum Corp., and halts operations at a petrochemical plant in the United Arab Emirates.
Asian stock markets opened cautiously. Japan’s Nikkei index rose 0.7% and South Korea’s shares gained 2%. Gold prices fell by around 1% to the range of US$4.630 as soaring energy costs further eroded expectations for interest-rate cuts.#GateSquareAprilPostingChallenge
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