00:04Hello and welcome to Global Pulse News. Oil prices jumped on Sunday as President Trump
00:11issued an ultimatum to Iran over the Strait of Hormuz. U.S. crude briefly topped $114 a barrel
00:20after Trump demanded Iran reopen the strategic waterway by Tuesday or face military strikes on
00:27its power infrastructure. By 9.28 p.m. Eastern Time, May delivery contracts for U.S. West Texas
00:35intermediate crude paired earlier gains, trading up 0.5% at $112.08 per barrel. Meanwhile, Brent crude
00:47for June delivery, the international benchmark, also eased to a 1.3% increase, trading at $110.47
00:57per barrel. In a profanity-laced social media post on Sunday, Trump warned that Iran would be
01:04quote, living in hell if it refused to open the Strait. The President specifically threatened to
01:11bomb Iranian power plants and bridges. He then followed up with a cryptic message and we quote
01:18directly, Tuesday, 8 p.m. Eastern Time, offering no further details. Iran has effectively blocked the
01:27Strait of Hormuz through a series of attacks on oil tankers. This waterway is a critical maritime
01:33choke point connecting the Persian Gulf to global markets. Before the current conflict, approximately
01:4020% of the world's petroleum supplies passed through this route. The closure has triggered the largest
01:48oil supply disruption on record. Prices for crude, jet fuel, diesel, and gasoline have surged since
01:55hostilities began. In a national address last Wednesday, Trump said the war would continue for
02:02another two to three weeks. According to TD Securities, nearly 1 billion barrels of supply
02:10will be lost by the end of this month. That includes up to 600 million barrels of crude oil
02:16and roughly 350 million barrels of refined products. Senior commodity strategist Ryan McKay wrote in a note
02:25to clients on Thursday and we quote directly, with the conflict now expected to last at least into deep
02:32April, the barrel math becomes increasingly grim. Energy consulting firm Rapidan Energy projects a net loss
02:41of 630 million barrels of oil and refined products by the end of June, after accounting for redirected
02:48pipeline flows, emergency stockpile releases and inventory drawdowns. On Sunday, eight members of the OPEC
02:57alliance agreed to raise production by 206,000 barrels per day in May. However, it remains unclear how that
03:06additional oil would reach global markets while the strait remains closed. Also on Sunday, Kuwait Petroleum
03:13reported that several of its operational facilities had been hit by drone attacks, resulting in significant
03:21damage. OPEC warned that repairing energy infrastructure damaged by Iranian strikes, and we quote,
03:28is both costly and takes a long time, thereby affecting overall supply availability. The eight members of
03:37OPEC participating in the output increase are Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait,
03:45Kazakhstan, Algeria, and Oman. This is a developing story. We'll bring you updates as they come in.
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