Oil Holds Gains Amid Ceasefire Doubts

WTI crude futures remained above $98 per barrel on Tuesday after gaining nearly 3% in the previous session, as President Donald Trump said the US-Iran ceasefire was on “massive life support” after dismissing Tehran’s latest peace proposal, fueling concerns that the Strait of Hormuz may stay effectively closed for an extended period. Iran reportedly called for the US to end its naval blockade and ease sanctions while seeking to retain some authority over traffic through the key shipping route. Meanwhile, reports suggested President Trump is set to meet with his national security team to weigh a potential return to military operations, alongside renewed discussions about escorting commercial vessels through Hormuz. Saudi Aramco CEO Amin Nasser warned that the market is losing roughly 100 million barrels of supply each week, adding that prolonged disruptions could push any market normalization into next year.

WTI crude oil futures extended their rise to $98 per barrel on Monday after US President Trump stated that the current ceasefire between the US and Iran is in a fragile state, risking an escalation to the war that prevents oil from the region from being exported. The US had already rejected Iran's peace counteroffer to consolidate the disagreement between both sides, dimming the likelihood that the conflict could end soon. The near shutdown of traffic through Hormuz has severely disrupted global shipments of crude oil, LNG and fuels, driving energy prices higher and increasing inflation concerns. Saudi Aramco CEO Amin Nasser warned the market is losing around 100 million barrels of supply each week and said prolonged disruptions could delay normalization until next year. Fresh drone attacks near Qatar and interceptions in the UAE and Kuwait underscored ongoing security risks, while Israeli Prime Minister Benjamin Netanyahu said the conflict with Iran is “not over.”

WTI crude oil futures climbed to around $97 per barrel on Monday after President Donald Trump rejected Iran’s latest response to a US peace proposal, prolonging disruptions in the Strait of Hormuz. Trump called Tehran’s reply “totally unacceptable,” highlighting the fragility of the ceasefire after ten weeks of conflict. The near shutdown of traffic through Hormuz has severely disrupted global shipments of crude oil, LNG and fuels, driving energy prices higher and increasing inflation concerns. Saudi Aramco CEO Amin Nasser warned the market is losing around 100 million barrels of supply each week and said prolonged disruptions could delay normalization until next year. While some tankers from the UAE, Saudi Arabia and Qatar have resumed limited transit, flows remain far below pre-war levels. Fresh drone attacks near Qatar and interceptions in the UAE and Kuwait underscored ongoing security risks, while Israeli Prime Minister Benjamin Netanyahu said the conflict with Iran is “not over.”