• Oil prices increased amid geopolitical tensions following Trump's ultimatum to Iran.
• Brent crude hovered around $112, while WTI fluctuated close to $100 per barrel.
• Trump's military strike plans were temporarily delayed, leading to market volatility.
• Iran denied holding talks with the US, exacerbating supply fears in the oil market.
• The International Energy Agency warned of significant oil market disruptions.

Oil prices have surged as geopolitical tensions rise, particularly following US President Donald Trump's ultimatum to Iran regarding the reopening of the Strait of Hormuz. Brent crude prices peaked at around $112 per barrel amid concerns that conflict could severely disrupt global oil shipments through this vital trading route, which accounts for a significant portion of the world’s oil supply. Trump's assertion on social media that the US would "hit and obliterate" Iranian energy infrastructure has contributed to this volatility, with prices for West Texas Intermediate (WTI) also seeing substantial increases, according to Channel News Asia and India Times.

However, following Trump's announcement of a five-day halt to planned military strikes, oil prices experienced significant fluctuations. Brent crude fell to as low as $96 per barrel at one point during trading, indicating a retreat from the previous peaks driven by fears of escalating conflict. This pause was characterized as an opportunity for potential diplomatic discussions, though the international community remains watchful of the developments, which continue to influence market sentiment, according to India Times and Reuters.

Iran's response to Trump's threats included dismissing claims of dialogue with the US, asserting that it would defend its regional interests vigorously. This denial further fueled fears regarding potential supply disruptions, especially as the Strait of Hormuz remains largely closed to tanker traffic. The International Energy Agency has declared this scenario to be the most significant shock the global oil markets have faced, a sentiment echoed by oil executives and energy ministers concerned about the long-term economic impacts of the ongoing conflict, according to Reuters and India Times.

The dynamic situation has seen oil prices extensively affected, with projections suggesting that if the conflict escalates further, prices could spike even higher. Analysts note that the potential reopening of the Strait of Hormuz is pivotal for restoring regular supply levels and stabilizing prices. Until then, the markets are expected to remain volatile, influenced by ongoing geopolitical developments in the region, as highlighted by market analysts, according to Channel News Asia and Reuters.