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News Topical, Digital Desk : Oil prices rose in the US on Sunday after President Donald Trump recently issued an ultimatum to Iran to remove fuel ships from the Strait of Hormuz, prompting Tehran to threaten to close it indefinitely.
Brent crude, the global benchmark, rose 1.69% to about $114.09 per barrel at market opening. U.S. crude rose 2% to $100.29. Goldman Sachs indicated on Friday that these high prices could persist until 2027.
Trump's threat and Iran's response
Trump said over the weekend that the United States would "completely destroy" Iran's power plants if the Strait of Hormuz wasn't reopened by Monday evening. Iran responded by saying that if Trump follows through on his threats, it would completely close the Strait of Hormuz and not reopen it until the destroyed power plants are rebuilt.
The ongoing war in Iran, now in its fourth week, has caused significant disruptions to oil supplies, primarily due to the near-closure of the Strait of Hormuz, the world's busiest oil shipping route.
Gas prices also increased along with oil.
Rising oil prices are also pushing up gas prices for Americans, who are paying more at the pump. The average price of a gallon in the US reached $3.94 on Sunday, nearly a dollar higher than since the war began. It's estimated that the price of a gallon could reach $4 on Monday.
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