Oil prices edge higher after Trump reiterates threat to bomb every bridge and power plant in Iran

Oil prices edged higher Monday, after President Donald Trump doubled down on his threat to destroy Iran's civilian infrastructure if the Islamic Republic does not agree to reopen the Strait of Hormuz.

The U.S. West Texas Intermediate contract for May ticked up 0.78% to close at $112.41 per barrel. International benchmark Brent crude prices edged 0.68% higher to settle at $109.77 per barrel.

"We have to have a deal that's acceptable to me, and part of that deal is going to be — we want free traffic of oil and everything else," Trump told reporters at a press conference Monday.

Trump reiterated his demand that Iran open the Strait by Tuesday at 8 p.m. ET. The president said he believes the Islamic Republic's leadership is negotiating in good faith.

"I can tell you that we have an active, willing participant on the other side," Trump said. "They would like to be able to make a deal. I can't say any more."

Trump then threatened to decimate every bridge and power plant in Iran within four hours of his Tuesday deadline. "It will take them 100 years to rebuild," the president said.

Iran has effectively kept the Strait closed through attacks on oil tankers. The sea route connects the Persian Gulf to world markets. About 20% of global supplies passed through the Strait before the war.

The closure of the Strait has triggered the largest oil supply disruption in history. Crude, jet fuel, diesel, and gasoline prices have surged since the war started.

Trump said in a national address last Wednesday that the war would continue for two or three weeks.

Nearly 1 billion barrels will be lost by the end of the month, comprising up to 600 million barrels of crude oil and roughly 350 million barrels of refined products, according to TD Securities.

"With the conflict now expected to last at least into deep April, the barrel math becomes increasingly grim," said Ryan McKay, senior commodity strategist at TD Securities, in a Thursday note to clients.

Rapidan Energy sees a total net loss of 630 million barrels of oil and products by the end of June, when accounting for redirected flows through pipelines, emergency stockpile releases and inventory drawdowns.

The eight members of OPEC+ on Sunday agreed to increase production by 206,000 barrels per day in May, though it is unclear how the oil will reach the global market with the Strait still closed.

Kuwait Petroleum Corporation said Sunday that several of its operational facilities were attacked by drones, resulting in significant damage.

OPEC+ warned that repairing energy infrastructure damaged by Iranian attacks "is both costly and takes a long time, thereby affecting overall supply availability." 

The eight members of OPEC+ are Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria and Oman.

— CNBC's Megan Cassella and Anniek Bao contributed to this report.