Prices of crude oil rose yesterday. While United States (US) West Texas Intermediate crude futures gained $0.71, or 0.6 per cent, to trade at $112.25 per barrel, Brent crude futures rose $1.71, or 1.6 per cent, to trade at $110.74 a barrel.

The increases were attributed to the threat by United States President Donald Trump against Tehran. He had threatened to target Iran’s power plants and bridges today if the strategic Strait of Hormuz is not reopened.

The Strait of Hormuz, which carries oil and petroleum products from Iraq, Saudi Arabia, Qatar, Kuwait and the United Arab Emirates, remains largely closed by Iranian attacks on shipping after the war began on February 28.

Because of the Middle East supply disruptions, refiners are seeking alternative sources for crude, particularly for physical cargoes in the US and the UK North Sea. However, there are reports that some vessels, including an Omani-operated tanker, a French-owned container ship and a Japaneseowned gas carrier, passed through the Strait of Hormuz since Thursday.

In addition, the Organisation of Petroleum Exporting Countries and its allies (OPEC+) on Sunday, OPEC+agreed to a production increase of 206,000 barrels per day for May. OPEC also cautioned that repairing energy facilities, such as those damaged in the Middle East war, is “costly and takes a long time.”