Oil prices remained volatile on Monday as traders assessed rising geopolitical tensions around the Strait of Hormuz. Brent crude rose near $112 a barrel, while West Texas Intermediate traded near $98, as markets reacted to an ultimatum of 48 hours issued by Donald Trump.WTI crude was at $98.67 per barrel around 7:55 am Indian time. At the same time, Brent crude was hovering around $ 112.02 per barrel. Earlier, the US President had threatened to target Iran’s power infrastructure if Tehran failed to reopen the key shipping route within the stipulated deadline. In a social media post, he wrote, “If Iran does not fully open the Strait of Hormuz, without any threat, within 48 hours from this exact time, the United States will attack and destroy their various power plants, starting with the largest first! Thank you for your attention to this matter.” Meanwhile, Tehran responded that it would attack critical infrastructure throughout the Middle East if such action was taken. Even despite the latest volatility, oil prices remain stubbornly high. Brent has risen more than 50% since late February, when the US and Israel launched attacks on Iran. The prolonged conflict has sent refined petroleum products rising more than crude oil, raising concerns about inflationary pressures and volatility in broader financial markets. This situation has also forced investors to grapple with mixed signals from Washington. Shortly before issuing the ultimatum, Trump had indicated that he might consider “winding down” the U.S. military effort, increasing uncertainty over the direction of the policy. At the center of the crisis is the Strait of Hormuz, a vital link between the Persian Gulf and global energy markets. Shipping activity through the route has virtually halted, with only limited movement permitted by Iran. As the conflict reaches its fourth week, Tehran officials have shown less willingness to reopen the route, focusing instead on internal stability. The disruption has forced Gulf producers to either hold on to large amounts of crude or rely on restricted alternative export channels. The International Energy Agency described the situation as the biggest shock ever to global oil markets, while it coordinated the release of emergency reserves among member countries. Reflecting supply pressure, Goldman Sachs has raised its forecast for Brent in 2026 to $85 a barrel from $77. The bank expects flows through Hormuz to remain at about 5 percent of normal levels for six weeks before gradually improving. “On the physical side, the biggest oil supply shock yet is still mostly a local shock, leading to extreme declines in transit and oil shortages in Asia,” analysts including Dan Struven said in a March 22 note cited by Bloomberg. In a parallel move aimed at easing supply disruptions, the US has allowed the sale of Iranian oil and petrochemical cargo already loaded on tankers. The US Treasury Department issued a general license from Friday allowing such shipments to be sold through April 19.