Oil Prices Surge on Trump Ultimatum to Iran

Oil prices surged on Tuesday as U.S. President Donald Trump issued an ultimatum to Iran, demanding the reopening of the Strait of Hormuz by 8 p.m. Washington time or face military strikes on its bridges and power plants. The strait, a critical chokepoint for about one-fifth of global oil shipments, has remained closed to most traffic since Iranian forces sealed it following U.S. and Israeli attacks that began on February 28.

By midday in London, Brent crude futures had climbed 1.74, or 1.6 percent, to 111.51 a barrel, while U.S. West Texas Intermediate crude futures rose 3.45, or 3.1 percent, to 115.86 a barrel, marking a near four-week high. The gains reflected heightened fears of prolonged supply disruptions in a conflict now entering its seventh week, with traders closely monitoring the deadline amid stalled diplomatic efforts.

Trump's threats escalated tensions, as he warned in a social media post that failure to comply would bring severe consequences to Tehran. Iranian officials rejected a U.S. ceasefire proposal mediated through Pakistan, insisting on a permanent end to hostilities rather than a temporary pause. "Iran's rejection has kept tensions elevated and left...