Global oil prices surged as the deadline set by Donald Trump loomed over Iran. The US President issued a stark warning on the Truth Social platform, cautioning that an entire civilization could be lost unless Iran ceased its threat of attacks on ships navigating the Strait of Hormuz.
Trump’s ultimatum, with a deadline of 8pm Eastern time (1am UK time), coincided with US military strikes on Kharg Island, Iran’s key oil export location. The focus of the ultimatum was Iran’s critical infrastructure, including power plants.
By mid-afternoon, Brent crude climbed to $110 per barrel, while US West Texas Intermediate crude approached a four-week peak at $115.3 per barrel. The uncertainty led to jittery stock markets, with the UK’s FTSE 100 plummeting over 80 points, erasing £19 billion in listed company value.
The Strait of Hormuz, responsible for a significant portion of global oil shipments, had been effectively closed due to ongoing US and Israeli actions. Strikes on Iran intensified, targeting various key installations like bridges, airports, and power lines.
Analysts like Axel Rudolph from IG noted the market’s unease as the countdown to Trump’s deadline continued. The energy crisis sparked by the Iran conflict was described as unprecedented by Fatih Borel, the head of the International Energy Agency, surpassing past oil crises in severity.
Domestically, UK households faced escalating fuel prices over the Easter weekend, with unleaded prices hitting 157.2p per litre and diesel at 189.2p. The AA highlighted a narrowing gap between supermarket fuel prices and other outlets, urging caution about the ongoing price discrepancies affecting consumers.