West Texas Intermediate (WTI) crude oil prices climbed to around $97.85 during early European trading hours on Monday, nearing $98.00, following US President Donald Trump's threats and military action against Iran's key oil export facilities on Kharg Island [1]. The escalation in tensions has led to mounting supply fears, especially after the US-Israel operations effectively closed the Strait of Hormuz since February 28, with Trump demanding allies help reopen the vital shipping route [1]. Trump stated that he is in talks with other countries, including Israel, to secure the Strait of Hormuz, and warned that attacks could expand to energy infrastructure if Tehran interferes with transit through the strait [1][2].
Trump emphasized that countries such as China, which he claimed rely on the strait for about 90% of their crude imports, should contribute to securing it, while the US only depends on it for "1%, 2%" of its oil [2]. Oil prices hovered around $100 per barrel on Monday, with WTI futures trading at $99.32 and Brent at $104.84 [2]. Several ships have been damaged since the US and Israel attacked Iran last month, and no country has publicly announced plans to deploy warships to the strait. The US Navy has also not been escorting ships, citing high risks [2].
India, the world's third-largest oil importer, is facing rising energy costs and panic-buying amid tightening supplies triggered by the closure of the Strait of Hormuz [3]. Two Indian ships carrying liquefied petroleum gas transited the strait on Friday, but Indian officials clarified this was not part of a blanket arrangement with Tehran for safe passage [3]. India's deepening ties with the US and Israel are straining its relations with Iran, complicating efforts to secure energy supplies [3]. India has not condemned the US-Israel attacks on Iran or the killing of Iran's Supreme Leader, Ayatollah Ali Khamenei, during the strikes on February 28 [3].
Despite the supply fears, the International Energy Agency (IEA) announced a historic release of 400 million barrels from strategic reserves to curb the economic impact of the US-Israel war with Iran. This coordinated release of emergency oil reserves is intended to add temporary supply to the market and prevent a sharp spike in oil prices [1]. JPMorgan's Natasha Kaneva described the US strikes and Trump's threats as a "major escalation in the war" [1].
Analysts noted that the Trump administration did not consult allies in Europe or Asia before launching military action, raising questions about whether those countries would expect concessions from Washington in return for assistance [2]. Trump warned, "Whether we get support or not, I can say this, and I said it to them: we will remember" [2].
CONCLUSION
The US-Israel strikes on Iran and threats to its oil infrastructure have driven WTI oil prices near $100, intensifying global supply concerns and impacting major importers like India. While the IEA's release of strategic reserves may temporarily ease price pressures, ongoing geopolitical tensions and uncertainty over allied support suggest continued volatility in energy markets. The situation remains fluid, with significant implications for global oil supply and diplomatic relations.