Brent crude oil climbed more than 1% to above $110 per barrel when markets opened Sunday amid escalating tensions with Iran. President Trump is threatening to bomb Iran's power plants and bridges starting Tuesday if the regime doesn't open the Strait of Hormuz, while simultaneously telling Axios the U.S. is in "deep negotiations" with Iran.
The oil price surge reflects unprecedented disruption to global energy flows as the critical Strait of Hormuz remains largely closed. The waterway is a vital chokepoint for global oil shipments, and its closure is creating severe supply constraints. Average U.S. gasoline prices rose to $4.11 per gallon, up 13 cents from a week ago.