Oil prices continued to rise during Asian trading on Tuesday as markets prepared for the possibility of heightened tensions in the Middle East ahead of U.S. President Donald Trump’s deadline for Iran to reopen the Strait of Hormuz.
At 03:15 ET (07:15 GMT), Brent crude futures for June delivery were up 1.5% at $111.37 per barrel, while U.S. West Texas Intermediate (WTI) crude futures gained 2.2% to $114.85 per barrel.
The advance marked the third straight session of gains, fueled by growing concern over the Strait of Hormuz, a key global shipping route that normally handles around one-fifth of the world’s oil flows.
On Monday, Iran rejected a proposal backed by the United States that called for a 45-day ceasefire and a gradual reopening of the strait, alongside wider talks covering sanctions relief and reconstruction efforts.
Instead, Tehran demanded a permanent halt to hostilities, legally binding assurances against future attacks, the lifting of sanctions and compensation for damages.
Trump reiterated that the deadline of Tuesday at 8 p.m. ET remains firm and warned that if Iran fails to comply, the United States could launch strikes on Iranian infrastructure, including bridges and power plants.
He said Iran could be “taken out” quickly, highlighting the growing risk of a broader escalation.
The increasingly confrontational rhetoric has unsettled energy markets, with traders factoring in the possibility of further supply disruptions across the Gulf region.
Reports in the media indicated that Iran and Israel exchanged attacks on Tuesday, underscoring the absence of progress in diplomatic efforts.
Interruptions to tanker traffic in recent weeks have tightened expectations for supply and pushed risk premiums higher in the oil market.
Although OPEC+ has announced modest increases in output, analysts believe the additional supply remains largely theoretical due to existing logistical and production constraints.
“With the Strait of Hormuz effectively shut, higher quotas remain largely notional for producers, including Iraq, Kuwait, Saudi Arabia and the UAE, until the route reopens,” ING analysts said in a note.