Oil prices climbed nearly 1% on Tuesday as uncertainty surrounding ceasefire negotiations between the United States and Iran renewed fears of prolonged supply disruptions across the global energy market.
Brent crude oil, the international benchmark for Nigerian crude oil, gained to around $105 per barrel, while U.S. West Texas Intermediate (WTI) crude traded above $99 per barrel after both benchmarks recorded almost 3% gains in the previous session.
The latest rally followed comments from U.S. President Donald Trump, who described the ceasefire arrangement with Iran as “on life support” after rejecting Tehran’s response to Washington’s latest peace proposal.
Reuters reported that disagreements remain over sanctions relief, compensation for war-related damages, Iranian oil exports and control of the Strait of Hormuz.
The Strait of Hormuz remains central to the oil market crisis as roughly one-fifth of global oil and gas supply normally passes through the strategic shipping route.
Disruptions in the region have already reduced tanker movements and export flows, tightening global supply conditions.
OPEC’s crude oil production fell sharply in April to its lowest level in more than two decades due to export disruptions linked to the ongoing conflict involving Iran.
The producer group’s output reportedly declined by about 830,000 barrels per day month-on-month to 20.04 million barrels per day.
Saudi Aramco Chief Executive Amin Nasser warned that continued disruption in the Strait of Hormuz could delay oil market recovery until 2027.
Nasser said the market could lose about 100 million barrels weekly if current restrictions persist.
In response to rising energy prices and supply concerns, the Trump administration announced plans to loan 53.3 million barrels of crude oil from the U.S. Strategic Petroleum Reserve as part of broader international efforts to stabilize global oil markets.
Market analysts said oil prices remain highly sensitive to geopolitical developments in the Middle East.
Reuters reported that a successful agreement between Washington and Tehran could quickly push Brent crude back toward the $80 to $90 range, while any collapse in negotiations could trigger another sharp rally above $120 per barrel.
