Oil prices surge 3.3% after Trump dismisses Tehran’s peace offer, raising risks of prolonged Hormuz disruptions and supply cuts.
WTI crude oil settled near $99.40 on Tuesday, up 3.3%, as markets priced in heightened geopolitical risks after President Trump rejected Iran’s latest peace proposal. The advance extended a multi-day rally, with prices consolidating just below the $100 mark amid fears of renewed military action in the Strait of Hormuz.
Last week’s EIA inventory draw of 2.3 million barrels fell short of the 3.3 million forecast, but ongoing disruptions have tightened supply. Saudi Aramco CEO Amin Nasser warned weekly losses could reach 100 million barrels, with normalcy potentially delayed until 2027 if tensions persist.
Traders await Wednesday’s EIA report for fresh supply data, while US-China talks may influence Beijing’s stance on pressuring Tehran to accept Washington’s terms.