Trump-Iran Tensions Keep Oil Prices Elevated Amid Hormuz Supply Fears

Oil prices held firm during Asian trading on Tuesday after surging nearly 3% in the previous session, as renewed tensions between the United States and Iran raised concerns about global crude supply disruptions. Investors remain focused on the escalating geopolitical conflict and its potential impact on energy markets, especially around the Strait of Hormuz.

Brent crude futures climbed 0.3% to $104.52 per barrel, while U.S. West Texas Intermediate (WTI) crude futures also gained 0.3%, reaching $98.33 per barrel in early trading. The market rebound followed comments from U.S. President Donald Trump, who stated that the Iran ceasefire negotiations were now “on life support,” reducing expectations for a near-term diplomatic solution.

Trump sharply criticized Tehran’s latest response to a U.S.-supported peace proposal, calling it “totally unacceptable” and describing the reply as “a piece of garbage.” His remarks reignited fears that the prolonged conflict could severely impact global oil exports and shipping routes.

Iran responded by defending its demands, insisting that any agreement must include an end to the war, the lifting of U.S. naval restrictions, restoration of Iranian oil exports, compensation for damages, and recognition of Iran’s authority over the Strait of Hormuz.

The Strait of Hormuz remains a key concern for global energy markets because nearly 20% of the world’s oil and fuel supply passes through the strategic waterway. Analysts warn that any disruption in the region could trigger sharp increases in crude oil prices and further volatility across commodity markets.

Saudi Aramco CEO Amin Nasser also cautioned that even if shipping routes reopen quickly, it could take months for global oil supply chains to fully recover. Meanwhile, investors are closely monitoring Trump’s upcoming meeting with Chinese President Xi Jinping, where discussions may include oil markets, trade relations, and Middle East security concerns.