Brent Extends Rally as Trump Deadline Nears

Brent crude futures were volatile at around $110 per barrel on Tuesday, as markets awaited US President Donald Trump’s looming deadline for Iran to secure a deal on the Strait of Hormuz. Trump has insisted that any accord must guarantee uninterrupted transit through the vital waterway, warning that failure to comply by 8 p.m. Eastern Time could trigger US strikes on Iranian infrastructure. “Every bridge in Iran could be destroyed by midnight tomorrow, and power plants rendered permanently inoperable,” he said. The heightened rhetoric comes as the six-week-old conflict continues to roil oil markets, sparking the largest disruption to global crude supply in decades. Meanwhile, explosions were reported near the key oil hub of Kharg Island. Overnight, Iran launched seven ballistic missiles and multiple drones at Saudi Arabia, while the Israel Defense Forces reported two missile volleys from Iran since midnight.

Brent crude futures climbed above $111 per barrel on Tuesday, trading near their highest close since June 2022 as President Donald Trump’s deadline for Iran to strike a deal or face intensified attacks approaches. Trump warned he would target Iranian power plants and bridges if his conditions are not met by Tuesday 8 p.m. Eastern Time, including the reopening of the Strait of Hormuz. This overshadowed signs that the US and Iran may be moving closer to a ceasefire agreement through mediators. Meanwhile, Tehran cautioned that it would retaliate against potential US strikes on civilian infrastructure by escalating its own attacks on energy assets in the Gulf, potentially worsening the global energy shortage. Iran’s Foreign Ministry also rejected a temporary truce proposed via Pakistani mediators, insisting on a permanent cessation of hostilities and the lifting of sanctions as conditions for any agreement.

Brent crude futures rose to toward $111 per barrel on Monday as the market reacted to Iran’s formal rejection of a 45-day ceasefire proposal and President Trump's latest remarks. During a news conference President Donald Trump reiterated a strict Tuesday 8 p.m. deadline for Tehran to reopen the Strait of Hormuz or face the destruction of its power plants and bridges. Iran’s Foreign Ministry dismissed the temporary truce through Pakistani mediators and demanded a permanent end to hostilities and the lifting of sanctions as a prerequisite for any agreement. Physical market tightness remains with Dated Brent surging above $140 and Saudi Arabia raising its flagship Arab Light prices to a record premium of $19.50 over regional benchmarks. Traffic remains 90% below pre-conflict levels as major exporters face significant disruptions. Israel struck Iran’s largest petrochemical facility overnight while Tehran targeted energy infrastructure in Kuwait.