Brent oil climbed 4% to over $105 a barrel on Tuesday, supported by a prolonged disruption in the Strait of Hormuz and ongoing uncertainty over US-Iran talks.
International benchmark Brent crude traded at $105.75 per barrel at 2.51 p.m. local time (1151 GMT), up around 4% from the previous close of $101.69.
US benchmark West Texas Intermediate also increased about 5.3% to $101.47 per barrel, compared with $96.37 in the previous session.
Prices have continued to gain as the Strait of Hormuz has remained largely inaccessible for more than eight weeks and there are few signs of progress in negotiations between Washington and Tehran.
Markets have begun to price in a longer-than-expected disruption at the chokepoint, through which about 20% of global daily oil and LNG flows passed before the war. Early in the conflict, analysts had expected the outage to be short-lived, with traffic resuming in April.
Meanwhile, Trump signaled Monday he was unlikely to accept Iran’s latest proposal to end the war after Tehran proposed a plan to reopen the Strait of Hormuz while leaving questions about its nuclear program for later negotiations, CNN reported, quoting two sources familiar with the matter.
According to the report, Trump conveyed his views during a Monday meeting with top national security officials where Iran was discussed, with one source saying that the president was not likely to accept the plan that was sent to the US over the last few days.
Trump’s next move remained uncertain, the report said, adding that US officials are still worried about what they call internal divisions within Iran’s leadership and are unclear who holds final authority over any potential agreement.
News that the US remains cautious on the offer, along with an ongoing naval blockade, has constrained supply and lent support to prices.
Analysts also say low inventories and the need to replenish both commercial and strategic reserves are likely to keep oil prices supported in the near term.
By Ebru Sengul Cevrioglu
Anadolu Agency
energy@aa.com.tr
