Oil prices rose on Tuesday, with Brent crude trading above $103 a barrel, as persistent tensions around the Strait of Hormuz and uncertainty over a proposed reopening of the waterway kept markets on edge.
International benchmark Brent crude traded at $103.55 per barrel at 09.43 a.m. local time (0643 GMT), up around 1.8% from the previous close of $101.69.
US benchmark West Texas Intermediate also increased about 1.8% to $98.15 per barrel, compared with $96.37 in the previous session.
The gains came as geopolitical risk premiums remained elevated, with investors closely monitoring developments surrounding the strategic waterway, a critical artery for global energy supplies.
US President Donald Trump is dissatisfied with Iran's proposal to reopen the Strait of Hormuz and end the US-Israeli war on Iran, according to a report published on Monday.
Trump was briefed on Tehran's plan, which also involves the US ending its blockade on the critical waterway, during a White House Situation Room meeting on Monday, The New York Times reported, citing anonymous sources briefed on the discussion.
The proposal does not touch on what to do with Iran's nuclear program, multiple US and Iranian officials told the Times. Iran has previously rejected US demands that it halt all uranium enrichment, maintaining it has a right under international law to do so, and has so far refused to hand over uranium it has already enriched.
Adding to diplomatic pressure, UN Secretary-General Antonio Guterres on Monday urged the reopening of the Strait of Hormuz amid stalled US-Iran peace talks.
"I appeal to the parties: Open the Strait. Let ships pass. No tolls. No discrimination. Let trade resume. Let the global economy breathe," Guterres said at a high-level UN Security Council debate on maritime security.
The Strait of Hormuz—through which roughly one-fifth of global oil and liquefied natural gas flows—has faced major disruptions since early March after the US and Israel launched a joint offensive against Iran on Feb. 28. The war is currently on a halt and efforts to end it permanently are underway.
Underscoring the ongoing risks, a US warship prevented a crude oil tanker from sailing to an Iranian port over the weekend, Central Command (CENTCOM) announced Monday, the latest interdiction under the ongoing blockade.
While the diplomatic efforts are ongoing, traders remain wary of further disruptions, keeping upward pressure on prices.
By Ebru Sengul Cevrioglu
Anadolu Agency
energy@aa.com.tr
