Oil climbs as Hormuz tensions escalate and risks grow

Brent crude futures increased by 57 cents, or 0.5%, to $110.34 a barrel by 12:02 GMT. Meanwhile, US West Texas Intermediate (WTI) crude rose $1.26, or 1.1%, to $113.67 a barrel.

Market momentum was driven by concerns over supply disruptions after Iran effectively closed the Strait of Hormuz following US and Israeli strikes that began on February 28. The waterway normally carries around 20% of global oil flows, making it a vital artery for international energy markets.

Trump warned of severe consequences if Iran fails to meet a deadline to reopen the strait, stating that further action would be taken if no agreement is reached. In response, Tehran rejected a US-backed ceasefire proposal, delivered via Pakistan as a mediator, and insisted on a permanent end to hostilities while refusing to reopen the passage.

The ongoing standoff has heightened uncertainty across global energy markets, with investors vigilantly watching developments that could further influence supply and prices.