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Oil prices climbed on Sunday after US President Donald Trump threatened to strike Iranian energy facilities if the Strait of Hormuz remains closed, CNN reported, as Brent crude rose 1.4 per cent to reach USD 110.60.
US crude similarly increased by 1.8 per cent, settling at USD 113.60. As per CNN, the price surge followed a series of aggressive social media posts from the President directed at the Iranian government. "Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!! Open the F****n' Strait, you crazy b******s, or you'll be living in Hell - JUST WATCH! Praise be to Allah," Trump posted to Truth Social on Sunday morning. According to CNN, a senior Iranian official responded to the warning later that day, stating that the waterway would not be reopened under current conditions. The official maintained that the strait will remain closed until the country is "fully compensated" for war damages. Trump previously issued a two-day ultimatum to Iran on March 21, but eventually extended that deadline to April 6. Amid the rising tensions, Oman's foreign ministry confirmed that its representatives met with Iranian officials on Sunday. The discussions focused on potential terms for allowing merchant ships to resume passage through the waterway. Simultaneously, the Organization of the Petroleum Exporting Countries (OPEC) addressed global supply concerns following a virtual meeting of eight member nations. Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman reviewed market conditions and agreed to implement a production adjustment of 206 thousand barrels per day (kbd) starting in May 2026. "In their collective commitment to support oil market stability, the eight participating countries decided to implement a production adjustment of 206 thousand barrels per day from the 1.65 million barrels per day additional voluntary adjustments announced in April 2023. The 1.65 million barrels per day may be returned in part or in full subject to evolving market conditions and in a gradual manner," the release stated. Saudi Arabia and Russia are each slated to contribute 62 kbd to the monthly increment. Other adjustments include 26 kbd from Iraq, 18 kbd from the UAE, 16 kbd from Kuwait, and 10 kbd from Kazakhstan. Algeria and Oman will add 6 kbd and 5 kbd, respectively, to their output. Based on these increments, the required production for May 2026 is set at 10,228 kbd for Saudi Arabia and 9,699 kbd for Russia. Iraq's required production will reach 4,326 kbd, while the UAE and Kuwait are scheduled for 3,447 kbd and 2,612 kbd. Kazakhstan, Algeria, and Oman round out the group with requirements of 1,589 kbd, 983 kbd, and 821 kbd, respectively. The eight countries confirmed they will hold monthly meetings to monitor market conformity and compensation for any overproduced volumes recorded since early 2024. The next review is scheduled for May 3, 2026. (ANI)
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