Oil Prices Surge: Trump's Warning to Iran Triggers Global Supply Concerns

Global oil prices rose at the start of Asian trading on Monday (18/5/2026), after US President Donald Trump warned Iran to move towards a peace agreement immediately. The statement has triggered market concerns that conflict between the US and Iran could escalate, potentially disrupting global energy supplies.

According to CNBC, Brent crude for July contracts rose by 1.98 per cent to $111.42 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude for June contracts surged by 2.43 per cent to $107.98 per barrel, reaching this month’s highest level.

“For Iran, time is running out and they must move quickly, or there will be nothing left of them,” Trump wrote, emphasising that “Time is of the essence!”

The statement indicates that the deadlock in peace negotiations between Washington and Tehran persists, including issues regarding the reopening of the Strait of Hormuz, which remains restricted by Iran. Iran continues to close much of the shipping lanes in the Strait of Hormuz, while the US maintains a blockade on Iranian ports.

Before the conflict erupted, nearly one-fifth of the world’s oil and gas supply passed through the Strait of Hormuz, making it one of the most vital energy corridors in the world. The International Energy Agency (IEA) warned in its latest monthly report that global oil reserves are shrinking at the fastest rate in history due to the closure of the Strait of Hormuz. Meanwhile, the Swiss bank UBS estimates that global oil stocks could approach an all-time low of 7.6 billion barrels by the end of May 2026, provided monthly oil demand remains constant.