Key Points
On Sunday, former President Trump posted on Truth Social, stating: "The clock is ticking for Iran." The International Energy Agency warns that global oil inventories are being depleted at a record pace.
On March 12, 2026, in Muscat, Oman, shipping traffic through the Strait of Hormuz has declined during the US-Israel conflict with Iran, with the oil tanker 'Kallisto' docked at Port Sultan Qaboos. International oil prices rose on Monday. Former US President Trump warned Iran to "act fast" as peace talks remain deadlocked, while experts note global inventories have fallen to historic lows.
International benchmark Brent crude (July futures): up 0.64% to $109.96 per barrel. US West Texas Intermediate (WTI) crude (June futures): up 0.55% to $106 per barrel.
Trump's weekend warning to Iran signals that the stalemate between Washington and Tehran over a peace agreement and the reopening of the Strait of Hormuz could lead to a renewed armed conflict. Trump posted on Truth Social on Sunday:
"The clock is ticking for Iran. They better act now, and fast, or they will have nothing. Time is of the essence!"
Despite a fragile ceasefire in April, US-Iran tensions persist: Iran has largely closed the Strait of Hormuz, while the Trump administration continues its blockade of Iranian ports. Before the conflict, approximately one-fifth of the world's oil and natural gas supply was transported through this strait. The latest monthly report from the International Energy Agency warns that global oil inventories are being drawn down at the fastest pace in history due to the continued closure of the Strait of Hormuz. The IEA stated: "With ongoing supply disruptions and a sharp contraction in buffer stocks, oil prices could see significant spikes in the future." A report from Swiss bank UBS last week indicated that if monthly oil demand remains unchanged, global inventories could approach the historic low of 7.6 billion barrels by the end of May. Jeff Currie, Chairman of the Abaxx Exchange, stated on CNBC's 'Squawk Box Europe' that the oil deficit could turn into a full-blown shortage within weeks. "People on the front lines in the industry are saying it's bad. Iran's intent is to inflict pain—the key issue isn't the price of oil, but whether oil can be purchased at all." "No physical shortage has materialized yet, but Europe could face a physical shortfall before the month's end. The market isn't in panic mode now... but pressure will build by the UK's late May bank holiday and the US summer driving season."
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