Brent Crude Rises For 2nd Session

Brent crude oil futures climed as much as 5% to trade above $100 per barrel on Tuesday afternoon as investors increasingly accepted that US-Iran negotiations had reached an impasse ahead of the approaching ceasefire deadline. Vice President JD Vance had been expected to travel to Pakistan on Tuesday, but the trip was delayed after Iran failed to respond to US negotiating proposals, according to NY Times. Earlier, President Trump said Iran had “no choice” but to send representatives. Speaking to CNBC, he added that the US remained in a strong position and was “ready to go” with fresh bombing strikes if no agreement is reached. The conflict continues to weigh on supply, with estimates of demand destruction already near 4 million barrels per day and potentially rising to 5 million barrels per day, roughly 5% of global supply, with Asia expected to bear the brunt of the impact.

Brent crude oil futures climbed to $96.6 per barrel on Tuesday after dipping to $94.7 earlier, as markets focused on potential US-Iran talks with both sides still deadlocked ahead of a ceasefire deadline. Iran has not confirmed participation in negotiations in Pakistan, while disagreements persist over key issues including access to the Strait of Hormuz. President Donald Trump said Vice President JD Vance is ready to attend talks but warned the US will not rush a deal and could resume military action if no agreement is reached. Oil prices remain volatile as traders weigh shifting prospects for diplomacy and the near standstill in Hormuz traffic, with only a handful of vessels passing. The conflict continues to disrupt supply, with estimates of demand destruction already around 4 million barrels per day and potentially rising to 5 million, or about 5% of global supply, with Asia most affected. China has called for an immediate ceasefire and restoration of shipping flows.

Brent crude futures slipped below $95 per barrel on Tuesday, trimming gains from the prior session following reports that Iran will send a delegation to Islamabad for a second round of negotiations with the US before the current two-week ceasefire expires. The move marks a shift from Tehran’s earlier stance that it would not engage in additional peace discussions. Meanwhile, President Donald Trump said he is unlikely to extend the existing truce if no agreement is reached by this week, adding that the Strait of Hormuz will remain blocked until a deal is secured. The strategic waterway continues to play a central role in the talks, as tensions resurfaced over the weekend after the US seized an Iranian vessel while Tehran targeted ships and reasserted control over the strait. Other major sticking points between the two sides include Iran’s nuclear program and persistent regional hostilities.