Oil Prices Jump as Trump Issues Hormuz Ultimatum and Iran Rejects U.S. Offer

Overview

• Prices climbed after the president threatened tougher action unless Iran opened the Strait of Hormuz, a crucial route for global oil shipments.
• Benchmarks strengthened with Brent at $110.34 a barrel and WTI at $113.67, while Russia’s Urals reached $116.05 in recent days for a 13-year high.
• Iran turned down a U.S. proposal delivered through Pakistan, rejecting a ceasefire and resisting pressure to reopen the waterway.
• Russia said drones struck the Caspian Pipeline Consortium’s Black Sea terminal, damaging loading equipment and storage tanks at a site that handles about 1.5% of global supply.
• Spot markets tightened as Saudi Aramco set a record premium for May Arab Light to Asia and U.S. WTI cash barrels fetched record markups as refiners hunted replacement cargoes.