Crude Surges Past $112 as Trump Pressures Iran on Hormuz Shipping

Key Details Benchmark U.S. crude climbed 38 cents to $112.79 per barrel, while Brent crude added 23 cents to $110.00. Oil prices remain significantly elevated compared to pre-conflict levels around $70 per barrel. Global stock markets showed cautious gains, with Australia's ASX 200 leading at +1.7% and most major indices posting modest advances. Why It Matters for Drivers The Strait of Hormuz handles roughly one-fifth of global oil shipments during normal times, making any disruption critical to fuel pricing at the pump. President Trump's ultimatum to Iran - threatening military action against power plants and bridges if shipping access isn't restored - has created ongoing uncertainty in energy markets. Analysts expect continued price volatility until the geopolitical situation stabilizes. Current Situation Iran rejected the latest ceasefire proposal and continues demanding a permanent end to the conflict. Trump's recent actions mark an escalation cycle extending back to late March, according to Mizuho Bank researchers. Iranian and Omani officials are exploring mechanisms to jointly administer the strait, though prospects for complete resolution remain uncertain as countries pursue bilateral solutions. Bottom Line Drivers should expect sustained fuel price pressure until Middle East tensions ease and Hormuz shipping normalizes.