Oil surges past $100 as allies resist Trump’s call for Hormuz tanker escort warships | World | News

Brent crude rose above $100 a barrel on Tuesday as President Donald Trump’s call for a naval coalition to escort tankers across the Strait of Hormuz was met with resistance from key U.S. allies, deepening concerns of a prolonged energy crisis. Brent futures rose $2.48, or 2.5%, to $102.69 a barrel in early trading in London, while U.S. West Texas Intermediate rose $2.42, or 2.6%, to $95.92 a barrel.

The price increase follows a setback on Monday, when several ships passed through the waterway before new Iranian attacks again closed shipping routes. Mr Trump said on Monday: “Numerous countries have told me they are on their way to help police the strait.” He criticized their hesitation, stating that it revealed “a lack of reciprocity in defense agreements with the United States.”

European powers and South Korea have refused to send warships, citing fears of involvement in the three-week conflict. Foreign Ministry spokesman Park Il said: “The government will maintain close communication with the US side and examine the issue closely and carefully, taking into account various factors and the changing regional situation.”

No major allied ships deployed. While the EU opposes the expansion of maritime operations, the UK continues to examine the situation without taking any action.

Closing the strait, which carries a fifth of global oil and liquefied natural gas, halved UAE production and reduced Iraq’s production from 4.3 million to 1.2 million barrels per day. Parliament Speaker Mohammed Bagir Kalibaf said, “The Strait of Hormuz cannot be the same as before. This strategic mistake made by the Americans and the Zionist regime has turned this potential into an active reality. This is a high-risk opportunity.”

Turkmenistan Ambassador Ali Mojtaba Rouzbehani said, “I have an offer to Trump: If he wants stability and passage in the Strait of Hormuz, he should ensure that his military forces withdraw from the Strait. We will also defend its stability and security.”

Analyst Matt Britzman said: “Geopolitical tensions have increased as Trump seeks to rally support for a coordinated plan to reopen the Strait of Hormuz. Even if the Iran conflict reaches a quick resolution, ongoing concerns about strained valuations and new warnings on private credit could prevent US markets from embarking on a full-blown recovery.”

AVP Kaynat Chainwala said: “Prices recently fell below $97 as traders noticed continued crude oil exports from Iran’s Kharg Island despite the recent US strikes. But the decline was short-lived as broader risk sentiment reasserted itself.”

The conflict resulted in more than 1,300 deaths in Iran, 850 in Lebanon, and 12 in Israel; 13 US service personnel were killed. Iranian missiles hit UAE targets on Tuesday, killing a Pakistani worker. Fires were reported in Qatar and Saudi Arabia seized twelve drones in its eastern provinces.

The White House faces diplomatic isolation as 26 South Korean ships and 183 crew remain stranded and China continues talks over Mr. Trump’s postponed visit to Beijing. A US trade official said: “Any delay to the China trip has nothing to do with China’s assistance across the strait.”

Bank of America and Standard Chartered raised their 2026 Brent forecasts to $77.50 and $85.50, respectively, citing risks of disruption in the second quarter. The International Energy Agency has proposed extra strategic reserve releases beyond the 400 million barrels currently planned.

The market indicates that the current base level is $100 oil. The choke point remains volatile as allies refuse to enter the conflict zone and global inflation concerns remain as central banks monitor the situation.