Oil prices climbed sharply Sunday as President Donald Trump threatened military action against Iranian energy facilities if the Strait of Hormuz remains closed, with Brent crude rising 1.4 per cent to $110.60 per barrel and US crude up 1.8 per cent to $113.60.

“Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!! Open the Fuckin’ Strait, you crazy bastards, or you’ll be living in Hell – JUST WATCH!” Trump wrote on Truth Social Sunday morning.

A senior Iranian official responded that the strait would not reopen until Tehran is “fully compensated” for war damages.

This marks a sharp departure from Trump’s comments last week suggesting that the US did not depend on the Strait of Hormuz.

He previously issued a similar two-day ultimatum on March 21, later extending the deadline to April 6.

Oman engaged in talks with Iran on Sunday to discuss reopening the strategic waterway, according to the Omani foreign ministry.

Meanwhile, OPEC+ nations voiced concerns about attacks on energy infrastructure during a virtual meeting, noting that restoring demand “is costly and takes a long time.”

The group had agreed to increase oil output by 206,000 barrels per day starting in May.

The supply disruptions have sent US gas prices to their highest levels since 2022, with a gallon now costing $4.11, up nearly 38% since the start of the conflict, according to AAA data.

Equity markets also reacted negatively after being closed Friday. Dow futures dropped 0.69% (324 points), S&P 500 futures fell 0.76%, and Nasdaq futures slid 0.91%.