Oil prices climb 3 percent on Iran ceasefire concerns

Oil prices rose by approximately 3% on Tuesday following comments from United States President Donald Trump, who indicated he does not intend to extend a looming ceasefire in the conflict with Iran. Brent futures climbed $2.48, or 2.6%, to reach $97.96 per barrel, while West Texas Intermediate (WTI) crude delivery increased by $3.54, or 4.0%, to settle at $93.15.

The price escalation follows statements from the White House suggesting that the military is prepared to act if diplomatic negotiations fail to yield results. Tensions in the region were further heightened as the military reported the seizure of a tanker linked to the Iranian government in international waters. This action appears to be part of a broader effort to enforce a blockade. Shipping data indicates that traffic through the Strait of Hormuz, a critical artery for 20% of global oil and liquefied natural gas supplies, has nearly ground to a halt, with only three vessels traversing the waterway in the last 24 hours.