By Ronnie Harui


Oil prices rose in Asia on Monday as traders assessed the feasibility of President Trump's plan to reopen the Strait of Hormuz for shipping.

Front-month West Texas Intermediate crude oil futures were 0.5% higher at $99.17 a barrel, after hitting $102.44 a barrel earlier, the highest intraday level since March 9, according to ICE data. Front-month Brent crude oil futures rose 1.5% to $104.66 a barrel.

The Trump administration intends to announce as soon as this week that multiple countries have agreed to form a coalition that will escort ships through the Strait of Hormuz, The Wall Street Journal reported, citing U.S. officials. The U.S. and potential coalition countries are still discussing whether the operations would begin before or after the Middle East conflict ends. The White House declined to comment on the expected announcement, which could shift depending on battlefield conditions.

"We are not entirely convinced that these steps the Trump administration are taking now including getting allies to help will meaningfully help," MUFG Bank's Michael Wan said in a note.

"From Iran's perspective, it makes absolute sense to press for more advantage including through inflicting more pain on the global and U.S. economy including through higher oil prices, if only to establish deterrence on U.S. and Israel over the medium-term through asymmetric warfare," the senior currency analyst said.

Meanwhile, U.S. forces in recent days struck military targets on Kharg Island, home to Iran's key oil-export terminal, although they didn't damage the island's energy facilities.

Even though the U.S. strikes on Kharg Island seem to have targeted military infrastructure rather than energy infrastructure, "it still poses supply risks, particularly given that Iranian oil is about the only oil moving through the Strait of Hormuz," ING's commodities strategy team said in a note.

"Targeting Iranian oil infrastructure only increases the risk that Iran will further target regional energy infrastructure," ING said. "This would potentially prolong the recovery of oil flows, even if the Strait of Hormuz reopens," it added.


Write to Ronnie Harui at ronnie.harui@wsj.com


(END) Dow Jones Newswires

03-15-26 2310ET