Oil Extends Gains Amid Ceasefire Doubts

WTI crude oil futures jumped nearly 4% to around $102 per barrel on Tuesday, extending a 2.8% gain in the previous session, as concerns grew that disruptions in the Strait of Hormuz could persist. President Donald Trump said the US-Iran ceasefire was on “massive life support” after rejecting Tehran’s latest peace proposal, raising fears that the key shipping route may remain effectively closed for longer. Iran reportedly demanded an end to the US naval blockade and sanctions relief while seeking to maintain some control over traffic through Hormuz. Meanwhile, reports indicated Trump was preparing to meet with his national security team to consider renewed military action and discuss plans to escort commercial vessels through the strait. Saudi Aramco CEO Amin Nasser warned the market is losing about 100 million barrels of oil supply each week, adding that if disruptions continue, a return to normal market conditions may not occur until next year.

WTI crude futures climbed above $101 per barrel on Tuesday, extending gains from 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.”