WTI climbs on Iran’s revenge response to Trump’s 48-hour ultimatum

West Texas Intermediate (WTI) – the US oil benchmark – opened Monday with a bang, extending Friday’s 3.5% advance to briefly regain the $100 level.

The latest leg higher in the black gold comes on the back of a new phase of escalation in the Middle East, induced by US President Donald Trump on Saturday.

Trump vowed to 'obliterate' Iranian energy facilities if it doesn't open the Strait of Hormuz in 48 hours.

In a strong response, Iran said on Sunday it would strike the energy and water systems of its Gulf neighbours in retaliation if Trump follows through with the threat.

Meanwhile, the Israeli military reported on Sunday that Tehran struck two long-range missiles in the southern Israeli towns of Arad and Dimona, injuring roughly 160 people.

The looming risks of the tit-for-tat strikes on civilian and energy infrastructure, combined with limited chances of the reopening of the Strait of Hormuz to the US and Europe, continue to power the black gold.

Looking ahead, it remains to be seen if the WTI price retains the bullish reaction to the weekly opening trades as all eyes remain on developments surrounding the Strait of Hormuz.