Oil hovers near $110 as Trump deadline on Hormuz looms

Oil prices hovered around $110 a barrel on Tuesday as a deadline set by US President Donald Trump for Iran to reopen the Strait of Hormuz approached.

The international oil benchmark Brent crude hovered around $108.82 a barrel. US West Texas Intermediate briefly surged above $116, its highest level in four weeks.

Trump has warned Iran to reopen the strategic waterway by 8pm in Washington, or be “taken out”. The strait, which carries roughly a fifth of global oil supply, has been effectively closed since 28 February.