Oil futures climbed sharply in early trading after President Trump issued a stark warning to Iran over the Strait of Hormuz, a critical oil-shipping chokepoint. Trump declared he would destroy all of Iran's power plants if Tehran didn't reopen the strait by Tuesday evening, sparking immediate market anxiety. Front-month WTI crude oil futures rose 2.0% to $113.82 per barrel, while Brent crude futures increased 2.1% to $111.28 a barrel.

The threat came during an interview with The Wall Street Journal, amplifying concerns about potential supply disruptions. This development highlights how geopolitical tensions can rapidly impact energy markets, with traders pricing in heightened risk premiums. The Strait of Hormuz handles roughly one-fifth of the world's oil shipments daily, making any closure a potential global supply shock. Trump's ultimatum, delivered just days before the deadline, underscores the vulnerability of oil infrastructure to political brinkmanship.

The market's immediate reaction suggests investors are already factoring in worst-case scenarios for Middle East supply stability. Oil prices could face further volatility if Iran proceeds with threats to block the strait, potentially disrupting global energy flows and pushing prices even higher. This situation demands close monitoring as the deadline approaches.