Oil prices rise after Trump issues ultimatum and Iran threatens to close the Strait of Hormuz indefinitely

By Auzinea Bacon, CNN

(CNN) — Oil prices rose Sunday after Iran threatened to shut down the Strait of Hormuz indefinitely in response to President Donald Trump’s ultimatum on the restoration of oil traffic through the critical waterway.

Brent crude, the global benchmark, climbed 1.69% to about $114.09 a barrel at the open. US crude rose 2% to $100.29. Goldman Sachs on Friday suggested that those high prices could last through 2027.

Trump this weekend said the United States would “obliterate” Iran’s power plants if the Strait of Hormuz is not reopened by Monday evening. Iran, in response, said if Trump makes good on his threats, it would completely close the Strait of Hormuz and will not reopen it until any destroyed power plants are rebuilt.

Iran also said it would target US and Israeli energy and communications infrastructure in the region.

The war in Iran, which has entered its fourth week, has caused a major oil disruption, due mostly to the effective closure of the strait, which is the world’s busiest oil-shipping channel.

Elevated oil prices are also pushing gas prices higher for Americans paying at the pump. The average price of a gallon in the US reached $3.94 on Sunday, up almost a dollar since the start of the war. A gallon of gas could reach $4 on Monday, Patrick De Haan, head of petroleum analysis at GasBuddy, told CNN on Sunday.

Gas prices will be slow to recover even after the war ends, De Haan told CNN.

“It’s going to be a snail’s pace for as long as this continues to stretch out, because it will take much more time for markets to globally mend,” he said.

Treasury Secretary Scott Bessent was asked Sunday on NBC’s “Meet the Press” about the war’s effect on the US economy. He said Americans would choose “temporary elevated prices” if it meant decades of peace in the Middle East.

Stock futures also declined at the open on Sunday. Dow futures dropped 0.6%, or 237 points. S&P 500 futures fell 0.6%, while Nasdaq futures dropped 0.8%.

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This story has been updated with additional content