Crude Prices Rise as Trump Warns of Escalated Attacks on Iran

Oil prices extended gains on April 7, 2026, as U.S. President Donald Trump reaffirmed a deadline for Iran to fully reopen the Strait of Hormuz or face large-scale attacks on its civilian infrastructure.

International benchmark Brent crude futures for June delivery traded 1.5% higher at $111.42 per barrel. U.S. West Texas Intermediate (WTI) futures for May delivery rose 2.4% to $115.09 per barrel.

U.S. Deadline and Infrastructure Threats

President Trump has set a deadline of 8 p.m. ET on April 7, 2026, for Iran to reopen the Strait of Hormuz. The president warned that if the deadline is not met, the U.S. Would target Iran’s power plants and bridges.

During a press conference on April 6, 2026, Trump stated that the U.S. Would decimate every bridge and power plant in Iran within four hours of the deadline passing, adding that it will take them 100 years to rebuild.

The president also asserted that Iran would be taken out in one night if the Islamic Republic’s leadership fails to comply with the demand to reopen the waterway.

Market Impact and Supply Disruptions

The conflict has triggered the largest oil supply disruption in history. The Strait of Hormuz, which connects the Persian Gulf to world markets, previously saw approximately 20% of global oil supplies pass through the route.

Iran has effectively kept the Strait closed through attacks on oil tankers. This closure has caused prices for crude oil, jet fuel, diesel and gasoline to surge since the war began on February 28, 2026.

Market volatility has been significant. On April 2, 2026, WTI crude futures rose 11.41%, or $11.42, to settle at $111.54 per barrel, marking the largest absolute price rise since 2020.

Diplomatic Negotiations

Despite the threats, President Trump indicated that Iranian leadership is negotiating in good faith. He stated on April 6, 2026, that there is an active, willing participant on the other side who would like to make a deal.

The president noted that the U.S. Is receiving assistance from other countries interested in ending the conflict due to its global economic impact. He emphasized that any acceptable deal must include the free traffic of oil and everything else.

Reuters reported that the U.S. And Iran are currently discussing a framework plan to end the five-week-old conflict. However, Tehran has pushed back against pressure to swiftly reopen the Strait of Hormuz and has rejected certain U.S. Demands.

While shipping through the Strait of Hormuz has slowly resumed, the looming April 7 deadline continues to drive price increases in the energy sector.