Global oil prices have surged above $110 a barrel following threats from former US President Donald Trump to target critical infrastructure in Iran if it continues to impede shipping through the Strait of Hormuz.
Brent crude futures rose by 1.6% to $110.85 in Monday morning trading in Asia, while US-traded oil increased by 0.8% to $112.40.
In a social media post on Sunday, Trump stated the US would attack power plants and bridges unless the crucial waterway is open by Tuesday.
Oil and gas shipments from the Middle East have faced severe disruptions as Tehran threatens to attack vessels attempting to use the strait, retaliating against US and Israeli airstrikes initiated on February 28.
Disruptions to shipping in the narrow waterway, which typically handles a fifth of the world’s energy shipments, have driven up global energy prices and raised concerns about increased inflation.
Oil prices had already surpassed $100 a barrel last week after Trump escalated threats against Iran, warning that US airstrikes in the coming weeks would send the country “back to the Stone Ages“.
Attacks on oil facilities in the Gulf, allegedly perpetrated by Iran, continued over the weekend.
Tehran claimed responsibility on Sunday for a series of strikes targeting petrochemical plants in Kuwait, Bahrain, and the United Arab Emirates.
On Monday, the Iranian Revolutionary Guard Corps (IRGC) issued a warning that it would intensify attacks against US economic interests if civilian infrastructure within Iran continues to be targeted.
On Sunday, Opec+, which includes major oil-producing nations such as Saudi Arabia and Russia, agreed to a modest increase in crude output for May.
However, the production hike of 206,000 barrels per day is largely symbolic, as several key members of the group are unable to increase output due to ongoing conflict.
Trump has previously postponed deadlines for Iran to cease its threats against ships using the strait, but reiterated his demands in a strongly-worded post on his social media platform.
The paragraph below contains very strong language.
In a Sunday post, Trump wrote: “Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!! Open the Strait, or you’ll be living in Hell – JUST WATCH! Praise be to Allah. President DONALD J. TRUMP”.
A few hours later, he added: “Tuesday, 8:00 P.M. Eastern Time!”
Trump told Fox News that there was a “good chance” an agreement would be reached on Monday, but said he was considering “blowing everything up and taking over the oil” if a deal was not reached soon.
Senior Iranian military officer Gen Ali Abdollahi Aliabadi dismissed an earlier Trump deadline, calling it “helpless, nervous, unbalanced and stupid”, adding that “the gates of hell will open” for the US leader.
Officials said “a heightened security posture is in place”, but no injuries were reported and no suspects had been identified.
The rescue could impact how Trump views a ground operation to take Kharg Island or to seize enriched uranium sites.
The US president says he will destroy Iranian power plants and bridges if the vital waterway is not reopened.
The BBC’s Orla Guerin travels to the edge of the critical waterway that Iran has put a stranglehold on.
Conflict has spread across the Middle East since the US and Israel launched strikes on Iran on 28 February.