Oil hits $116.8, highest since 2008 on Iran deadline

US West Texas Intermediate (WTI) crude oil futures climbed to $116.8 a barrel on Tuesday, marking the highest settlement since the 2008 financial crisis. The 4% rally came as investors priced in escalating supply risks following US-Israeli airstrikes on Iran’s Kharg Island, a key oil export hub. President Donald Trump had set a Tuesday night deadline for Tehran to accept US demands and reopen the Strait of Hormuz, warning of further military action. Iran, however, rejected a temporary ceasefire proposal, insisting on a permanent end to the war, according to media reports.

Supply risks mount

The prospect of a disruption to the Strait of Hormuz, through which nearly one-fifth of global oil passes, has kept energy markets on edge. Any blockage would immediately choke off supplies from Gulf producers to world markets. Meanwhile, Trump’s ultimatum and the ongoing US-Israeli offensive—which has killed over 1,340 people in Iran since February 28—have left traders bracing for a potential wider conflict. WTI briefly topped $115 earlier Tuesday after the Kharg Island strikes, before settling at $116.8.

Türkiye’s energy burden

As a country that imports nearly all its crude oil and natural gas, Türkiye is highly vulnerable to these price shocks. Rising energy costs directly impact transportation, manufacturing, and household bills, adding pressure to an already elevated inflation rate. Turkish officials have repeatedly called for de-escalation in the Gulf, warning that prolonged high oil prices could undermine regional economic recovery. Ankara maintains diplomatic channels with both Washington and Tehran, but market forces remain beyond political control.

Outlook remains volatile

Analysts expect oil prices to stay elevated as long as the Iran conflict continues. Trump declared the Tuesday deadline “final,” while Iran’s leadership shows no sign of backing down. Any further strikes on Iranian infrastructure, or a retaliatory closure of the Strait of Hormuz, could send crude above $150 per barrel. For Türkiye, which has been diversifying its energy suppliers and expanding renewable capacity, the current crisis underscores the urgency of reducing dependence on imported fossil fuels.