Oil prices rose during Asian trading hours on Monday, extending the sharp gains from the previous trading session.
Investors focused on President Donald Trump's ultimatum to Iran to resume shipping through the Strait of Hormuz.
Brent crude futures for June delivery rose 1.7% to $110.77 per barrel after jumping nearly 8% on Thursday.
West Texas Intermediate (WTI) crude futures were little changed at $111.95 per barrel after rising more than 11% in the last full trading session before the Good Friday holiday. President Trump warned on Sunday that Iran must open the Strait of Hormuz by Tuesday, setting a deadline of 8:00 PM ET (4:00 AM Moscow time Wednesday) for tanker traffic to resume through the strategic waterway.
Trump ratcheted up the pressure over the weekend via posts on Truth Social, declaring, "Tuesday will be Power Plant Day and Bridge Day, all rolled into one, in Iran. Nothing like that has happened!!!"
He added that Iran must "Open the damn Strait" or face serious consequences.
Meanwhile, Iranian presidential spokesman Seyyed Mohammad Mehdi Tabatabaei said transit through the strait could only resume if a portion of the revenues were used to compensate Iran for war-related damages.
The threat has reignited fears of further escalation in the Persian Gulf, where shipping has remained severely restricted for weeks. Meanwhile, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed that eight member countries will increase production by 206,000 barrels per day in May.
However, traders view this increase as largely theoretical, as much of the additional oil may not immediately reach the market due to current logistical constraints.
The renewed rise in oil prices has also heightened inflation fears in financial markets, as higher energy prices are expected to put pressure on transportation, manufacturing, and consumer sectors worldwide if the strait remains blocked.