Oil prices have edged lower today but remain elevated following a new ultimatum from US President Donald Trump to Tehran.

Brent crude, the global benchmark, inched down 0.9% to $108.1 a barrel, while WTI crude, the US benchmark, fell 1.2% to $110.2, The Caspian Post reports, citing foreign media.

Oil is traded as a futures contract, which means an agreement to buy or sell at a specified price on a future date. Monday’s Brent price reflects oil for delivery in June, whereas the WTI price reflects oil for delivery in May.

Trump on Sunday threatened to hit Iran’s power plants and other infrastructure if Tehran did not open the Strait of Hormuz - a critical oil and natural gas shipping route that has been effectively shut for more than a month now.

He also appeared to set a new Tuesday, 8 p.m. ET deadline for the reopening. In response, an Iranian official said the strait would stay closed until the country is “fully compensated” for war damages.

But traders may have drawn some relief from reports of diplomatic efforts. For example, CNN reported yesterday, citing sources, that Oman had held talks with Iran about the Strait of Hormuz. Meanwhile, Pakistan and Egypt have worked to keep communications open between Washington and Tehran, a Pakistani official source told CNN yesterday.

In Asia, where most countries are heavily dependent on crude and natural gas supplies from the Middle East, stock markets closed mostly lower on the day.

Two of the outliers, Japan’s benchmark index Nikkei 225 and South Korea’s Kospi, rose 0.6% and 1.4% respectively. Hong Kong’s market is closed for a public holiday.

US stock futures pointed to a marginally stronger open. European markets are closed for Easter Monday.