Oil prices rise as Trump calls for global support in Strait of Hormuz

Highlights

Oil prices surged: WTI reached $99.57, and Brent Crude hit $104.83.
Trump calls for international support in securing the Strait of Hormuz, but Japan and Australia decline to send ships.
Global geopolitical instability continues to fuel concerns over long-term oil supply disruptions, affecting both market sentiment and prices.

Global reactions and concerns

According to Reuters, in response to Trump’s call, Japan and Australia made it clear that they do not plan to send ships to the region. Both countries' governments emphasized that the situation remains unstable, and military involvement could escalate tensions in an already volatile conflict zone.

Meanwhile, the United Kingdom has expressed the possibility of deploying aerial minesweepers to clear the Strait of Hormuz, which has become a focal point of conflict due to ongoing military activity. The U.S. continues its efforts to engage with multiple countries for support, but specific nations have not been named in Trump’s recent statements. While the U.S. remains involved in the region, there are concerns about the potential consequences of further military escalation.

Kharg island risk adds to supply fears

President Donald Trump has threatened to strike Iranian oil export infrastructure on Kharg Island as the war enters its third week.

About 90% of Iran oil exports pass through Kharg Island. Iran produces around 3.2 million barrels per day and exports about 1.5 million barrels per day, making the site a critical hub for the country energy trade.

A direct strike on the island export terminal would likely trigger serious retaliatory action against regional energy infrastructure. That risk is adding to market concerns over a broader supply shock in the Middle East.

Oil prices surge amid rising geopolitical risks

Amid these geopolitical developments, oil prices have sharply increased. On Sunday, West Texas Intermediate (WTI) crude oil prices rose nearly 0.87%, reaching $99.57 per barrel, while Brent Crude prices jumped 1.64%, reaching $104.83. On Monday morning, WTI crude surged about 2%, reaching around $100.90 per barrel, while Brent Crude increased by 2.6%, holding above $105 per barrel. This sharp rise reflects growing concerns over the conflict’s impact on global oil supply chains, particularly in the context of U.S. military strikes on key Iranian energy infrastructure.

Market analysts are closely monitoring the situation, as oil prices may continue to rise if the conflict in the Strait of Hormuz further disrupts shipping routes. The ongoing military clashes between the U.S. and Iran, especially targeted attacks on critical Iranian energy facilities, are raising alarms about potential long-term disruptions to global oil flows.

Outlook: Market and political implications

Investors are closely watching both the political and market consequences of these developments. On Sunday, stock market futures showed signs of improvement, with the Dow Jones, S&P 500, and Nasdaq 100 rising by 0.3% to 0.4%. However, the rise in oil prices remains a major concern, and markets are likely to continue reacting to the developments in the U.S.-Iran standoff.

As countries like Japan and Australia refrain from sending military assistance, the question remains whether the global community will play a more active role in securing this vital maritime corridor. The situation in the Strait of Hormuz remains unstable, and market analysts predict that further disruptions could lead to even higher oil prices in the coming days.

Earlier, we reported that Asian shares slide as oil stays elevated near $100.

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