Crude oil prices experienced a sharp climb on Monday as market participants reacted to escalating rhetoric between Washington and Tehran. The increase in value follows a pointed warning from President Donald Trump, who suggested that time is running out for Iran to reach a resolution regarding ongoing peace talks and the restrictive status of the Strait of Hormuz. The President’s message, delivered via social media, has heightened concerns that the current diplomatic deadlock could deteriorate into renewed armed conflict.

Market data reflected this anxiety, with Brent crude futures for July rising 1.98% to reach $111.42 per barrel. Simultaneously, U.S. West Texas Intermediate futures for June saw a 2.43% increase, climbing to $107.98 per barrel, marking the commodity’s highest price point of the month. The ongoing closure of the Strait of Hormuz, a critical maritime passage that previously facilitated nearly 20% of the global oil and gas supply, remains a primary driver for the current market volatility.

Beyond the immediate political friction, supply concerns are being exacerbated by data showing rapidly shrinking global reserves. The International Energy Agency has issued a stark warning regarding the pace of inventory depletion, noting that the continued closure of key transit routes is straining global energy buffers. Analysts at UBS have projected that, should current consumption patterns persist, global oil inventories could drop to record lows of approximately 7.6 billion barrels by the end of May, setting the stage for potential further price spikes.