Oil Rises for 7th Session

WTI crude oil futures held near $100 per barrel on Tuesday, extending gains for a seventh consecutive session and reaching the highest level since early April, despite the UAE’s unexpected withdrawal from OPEC. The move has done little to alleviate supply constraints, as any increase in output still faces the critical logistical hurdle of the Strait of Hormuz remaining closed. Markets remain focused on US President Donald Trump’s response to Iran’s latest proposal aimed at ending the conflict, though reports suggest Washington is dissatisfied as Tehran’s nuclear programme remains a key sticking point. Despite a ceasefire largely holding since early April, mutual restrictions by Iran and the US have reduced traffic through the strait to near zero, intensifying supply concerns as the route typically carries around 20% of global energy flows. Now in its ninth week, the conflict has driven prices sharply higher and tightened global supply conditions.

WTI crude futures surged nearly 4% to above $100 a barrel on Tuesday, extending gains for a seventh consecutive session and reaching their highest level since early April. Traders are closely awaiting US President Trump’s response to Iran’s latest proposal to end the conflict and reopen the Strait of Hormuz. However, reports suggest Trump is dissatisfied with the offer, as Tehran’s nuclear programme remains a key sticking point in negotiations. Although a ceasefire has largely held since early April, mutual blockades by Iran and the US have reduced traffic through the Strait of Hormuz to near zero. The passage typically accounts for around 20% of global energy flows, amplifying concerns over supply disruptions. Now in its ninth week, the conflict has driven energy prices sharply higher and strained supply across major markets. The International Energy Agency has warned of a potential unprecedented supply shock, alongside growing risks of a slowdown in global demand.

WTI crude futures climbed above $98 per barrel on Tuesday, hitting a two-week high as stalled efforts to end the US–Iran conflict and reopen the Strait of Hormuz kept markets on edge. US President Donald Trump was reportedly dissatisfied with Iran’s latest proposal, with Tehran’s nuclear program remaining a central point of contention in negotiations. Iran conveyed through Pakistan that hostilities could cease if Washington lifted its naval blockade, agreed to a revised framework for transit through Hormuz, and provided assurances against future military action. Now in its ninth week, the conflict has pushed energy prices higher and disrupted supply across key markets, while the International Energy Agency has warned of an unprecedented supply shock alongside rising risks of a demand slowdown. Flows through the Strait of Hormuz, typically accounting for roughly 20% of global energy consumption, remain effectively halted, sustaining upward pressure on prices.