Global oil prices climbed further on Tuesday as mounting uncertainty surrounding the US-Iran ceasefire proposal intensified concerns over energy supplies and stability in the Middle East.
Brent crude futures rose 30 cents, or 0.29%, to reach $104.51 per barrel, while US West Texas Intermediate (WTI) crude gained 31 cents, or 0.32%, to trade at $98.38 as of 0002 GMT. Both benchmarks had already jumped nearly 2.8% during Monday’s trading session amid escalating geopolitical tensions.
The latest rally came after US President Donald Trump cast doubt on the future of the proposed ceasefire with Iran, describing the agreement as being “on life support”.
Speaking about Tehran’s response to a recent US proposal, Trump sharply criticised the Iranian position. “I would call it the weakest right now, after reading that piece of garbage they sent us. I didn’t even finish reading it,” Reuters reported him as saying.
Iran’s response reportedly focused on broader regional issues and included demands tied to ongoing conflicts in the Middle East. Tehran called for an end to hostilities across multiple fronts, including the conflict between Israel and Hezbollah in Lebanon. The proposal also demanded the lifting of sanctions, guarantees against future attacks, removal of the US naval blockade, compensation for war-related damage, the resumption of Iranian oil exports and recognition of Iran’s sovereignty over the Strait of Hormuz.
Iran later clarified that these demands were not concessions but what it described as “legitimate rights”, while accusing Washington of pursuing a “one-sided approach”.
The Strait of Hormuz remains at the centre of global market concerns. The narrow waterway, controlled in part by Iran, carries nearly one-fifth of the world’s oil and liquefied natural gas shipments, making it one of the most strategically important energy routes in the world.
Tensions around the strait escalated further after the US and Israel carried out joint strikes on Iran on February 28. Tehran later retaliated by tightening control measures around the passage, heightening fears of supply disruptions and triggering renewed volatility in global energy markets.
Analysts warn that any prolonged disruption to shipping through the Strait of Hormuz could place severe pressure on global oil supplies, fuel inflation and impact economies heavily dependent on imported energy.
