Oil prices expected to rise further Monday as Iran war continues

Oil prices appeared poised to climb further Monday after ending last week at their highest levels in nearly four years, as escalating threats between the U.S. and Iran raised concerns about energy supply disruptions, analysts said Sunday.

President Donald Trump warned Saturday that the United States would “obliterate” Iran’s power plants if Tehran failed to fully reopen the Strait of Hormuz within 48 hours. Prior to that, he signaled that the U.S. might be “winding down” the conflict, which is now in its fourth week.

The Iranian regime responded Sunday with a warning that it would target U.S.-linked infrastructure across the Gulf, including energy and desalination facilities, if the threat were carried out.

Iran also said they would completely close the strait if the U.S. attacked power plants.

Markets reacted strongly to the rising tensions. On Friday, international benchmark Brent crude futures for May delivery jumped 3.26% to settle at $112.19 per barrel, which is the highest level since July 2022.

U.S. crude rose 2.27%, or $2.18, to close at $98.32 per barrel.