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Oil prices hit $111 late on Sunday as fears grow over escalation in the ongoing US-Iran war.
At the end of March, prices hit a weekly high of $119 a barrel, before dropping to $98 in the middle of last week. On Thursday, they climbed to $109, before climbing again to $111 on Sunday night.
The continuing climb reflects the possibility of an intensification of US-Israeli attacks on Iran this week, when President Trump’s deadline for reopening the Strait of Hormuz expires today,
In a post on Truth Social on Saturday, President Trump said the clock is ticking on his ten-day period for negotiation.
“Remember when I gave Iran ten days to MAKE A DEAL or OPEN UP THE HORMUZ STRAIT,” he posted.
“Time is running out – 48 hours before all Hell will reign [sic] down on them. Glory be to GOD!”
On Saturday, explosions were reported at a major petrochemical facility in Iran, with Israel claiming responsibility for them.
Israel’s leadership is reported to have instructed the Israeli Defense Forces to begin targeting “economic targets” in Iran, in a bid to case “massive financial damage” to the regime.
Iranian media also reported an attack on the Bushehr nuclear power plant, the only nuclear power plant in Iran. The attack damaged a perimeter wall and left one person dead. Staff from the plant were evacuated.
Last weekend, President Trump reiterated his threat to attack Iran’s infrastructure, including energy facilities, if the Strait of Hormuz is not “immediately” reopened.
In a post on Truth Social, the President said, “The United States of America is in serious discussions with A NEW, AND MORE REASONABLE, REGIME to end our Military Operations in Iran.”
He continued by hailing the “great progress” that has been made, but issued a stern warning that went beyond earlier threats to attack critical infrastructure that had previously been spared.
“Great progress has been made but, if for any reason a deal is not shortly reached, which it probably will be, and if the Hormuz Strait is not immediately ‘Open for Business,’ we will conclude our lovely ‘stay’ in Iran by blowing up and completely obliterating all of their Electric Generating Plants, Oil Wells and Kharg Island (and possibly all desalinization plants!), which we have purposefully not yet ‘touched.’”
Overnight, it was reported the US and Iran have received a last-ditch ceasefire plan that could come into effect as early as today, as President Trump’s deadline before “all Hell will reign [sic] down” draws closer.
A framework for a ceasefire is reported to have been prepared by Pakistan and exchanged with representatives of the US and Iran.
The framework involves a two-tier approach: an immediate ceasefire, then negotiations for a lasting peace.
“All elements need to be agreed today,” a source said.
Pakistan’s army chief, Field Marshal Asim Munir, is said to have been in talks “all night long” with Vice President JD Vance, special envoy Steve Witkoff and Iran’s foreign minister Abbas Araqchi.
After an immediate ceasefire, which would include the reopening of the Strait of Hormuz, there would be 15-20 days to finalize a detailed agreement, with in-person talks in Islamabad, Pakistan.
Iranian officials have said they want a permanent ceasefire with guarantees Iran will not be attacked again by the US and Israel.
A final agreement is expected to include commitments from Iran not to pursue nuclear weapons, in exchange for relief from sanctions and the freeing up of frozen assets.
