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Global oil markets moved higher as a deadline imposed by Donald Trump approaches, pressuring Iran to reopen the strategically vital Strait of Hormuz.

Brent crude, the international benchmark, rose roughly 1.4% to $111.33 (£84.13) per barrel. Meanwhile, U.S. crude futures climbed 2.8% to $115.61, reflecting mounting uncertainty tied to the ongoing standoff.

On Monday, Trump warned Iran it could be eliminated “in one night” if it failed to reach an agreement with Washington by 20:00 local time Tuesday (00:00 GMT Wednesday).

Energy flows from the Middle East have been significantly disrupted as Tehran has threatened to target ships attempting to pass through the strait. The threats come in response to U.S. and Israeli airstrikes that began on 28 February.

Speaking from the White House, Trump said he believed “reasonable” leaders in Iran were negotiating in “good faith,” though he acknowledged that the final outcome remains unclear.

Iranian officials have so far dismissed proposals for a temporary ceasefire, instead calling for a permanent end to hostilities and the removal of sanctions.

According to Ye Lin of research firm Rystad Energy, the latest price increases indicate investors are growing skeptical about the prospects for a swift agreement. Iran’s firm stance suggests negotiations may be more difficult than anticipated and could prolong the conflict.

Lin added that market participants are also questioning whether Trump is genuinely pursuing a deal or “just putting up a smokescreen” while preparing for a broader military escalation.

Ahead of the deadline, the United Kingdom is set to convene allied military planners and partners on Tuesday to discuss securing the Strait of Hormuz once hostilities subside.

The disruption to one of the world’s most critical shipping lanes has driven up global energy costs and heightened fears of rising inflation.

Typically, about one-fifth of the world’s oil and gas supply passes through the narrow passage, making it a key artery for global energy markets.

Asian economies such as Japan and South Korea have been among the hardest hit, given their heavy dependence on Middle Eastern energy imports.

Although some vessels have continued to transit the strait in recent weeks, traffic remains well below pre-conflict levels.

Trump has also called on other nations to deploy warships to the region to help ensure safe passage for commercial shipping.

In parallel, several countries have entered negotiations with Iran to secure guarantees for their vessels navigating the contested waterway.