Oil extended gains on Tuesday as a U.S.-imposed deadline for Iran to open the Strait of Hormuz or be “taken out” approaches.
President Donald Trump threatened to order attacks on Iranian bridges and power plants and to rain “hell” on Tehran if it fails to comply with his deadline of 8 p.m. EDT Tuesday (0000 GMT Wednesday) to reopen the strait.
About a fifth of the global oil supply is normally shipped through the Strait.
Exports from several Gulf producers have already collapsed due to restricted flows through the Strait of Hormuz.
Brent crude futures rose $1.74, or 1.6%, to $111.51 a barrel by 0530 GMT, while U.S. West Texas Intermediate crude futures were up $3.45, or 3.1%, at $115.86.
Tehran rejected a ceasefire and said a permanent end to the war was necessary, and pushed back against pressure to reopen the strait.
Iranian forces effectively shut the strait after U.S. and Israeli attacks began on February 28.
The U.N. Security Council is expected to vote on Tuesday on a resolution to protect commercial shipping in the Strait of Hormuz, but in significantly watered-down form after veto-wielding China opposed authorising force, diplomats said.
Attacks in the region continued with explosions heard in the Syrian capital, Damascus, and surrounding countryside on Tuesday that were caused by the Israeli interception of Iranian missiles, Syrian state TV reported.
