Oil Price Today (April 6): Crude oil reclaims $110 as Trump warns of hitting Iran’s power plants. Where are prices headed?

Oil prices edged higher on Monday as fears of supply disruptions in the Middle East persisted, with the ongoing U.S.-Israeli conflict involving Iran continuing to weigh on market sentiment. The gains followed U.S. President Donald Trump’s indication that military action against Iran would continue.

Tensions intensified on Sunday after Trump issued a sharply worded Easter Sunday social media post directed at Tehran. He warned that Iran’s power plants and bridges could be targeted on Tuesday if the strategic Strait of Hormuz is not reopened.

Crude oil price on April 6

Brent crude futures advanced by $1.71, or 1.6%, to $110.74 per barrel as of 0057 GMT. U.S. West Texas Intermediate crude also rose, gaining $0.71, or 0.6%, to trade at $112.25 per barrel. In the previous session on Thursday, which marked the last trading day before the Good Friday holiday, both benchmarks saw sharp gains in highly volatile trade. WTI surged more than 11%, while Brent climbed nearly 8%, marking their largest absolute price increases since 2020.The conflict shows little sign of easing. Iran has conveyed to mediators that it is not willing to hold talks with U.S. officials in Islamabad in the coming days. According to a Wall Street Journal report on Friday, efforts to secure a ceasefire have stalled.

Meanwhile, OPEC+, which includes members of the Organization of the Petroleum Exporting Countries and allies such as Russia, agreed on Sunday to increase output by 206,000 barrels per day in May. However, the impact of this decision is expected to be limited, as several key producers are unable to ramp up supply due to the ongoing conflict.

Where are prices headed?

Crude oil is holding at elevated levels, reflecting sustained strength driven by supply disruption fears, while natural gas remains largely range-bound with mild volatility, indicating a balanced demand-supply scenario.International brokerage Macquarie has said that even if tensions ease in the near term, oil prices are likely to find support in the $85–$90 range, with a gradual move back toward $110 until normal flows through the Strait of Hormuz resume. The note added that if disruptions persist through April, Brent could still climb to $150 per barrel.

Looking ahead, crude prices could move higher from current levels. According to Kayanat Chainwala of Kotak Securities, oil may rise to $120 per barrel in the near term and potentially touch $150 if the conflict continues.

Nuvama Institutional Equities echoes the same view. The continued closure of the Strait of Hormuz, which handles around 20 million barrels per day, could push crude prices to the $110–150 per barrel range.

Experts say if ongoing tensions persist, the outlook for crude oil remains volatile and tilted upward. Continued conflict in the Middle East, especially disruptions around the Strait of Hormuz, would keep supply chains constrained, pushing Brent and WTI prices higher and sustaining inflationary pressures worldwide.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)