Oil prices rose in early Asian trade on Tuesday as fragile United States-Iran negotiations kept supply concerns alive. Brent crude futures were up 30 cents, or 0.29%, at $104.51 a barrel by 0002 GMT.
US West Texas Intermediate rose 31 cents, or 0.32%, to $98.38 a barrel at the same time, according to the provided market figures. Both benchmarks gained nearly 2.8% on Monday.
US President Donald Trump said on Monday that the ceasefire with Iran was “on life support,” citing disagreements over the cessation of hostilities. Additionally, disagreements include the removal of a US naval blockade, the resumption of Iranian oil sales and compensation for war damage.
Tehran emphasised sovereignty over the Strait of Hormuz, a key route for about one-fifth of global oil and liquefied natural gas flows.
Tim Waterer, chief market analyst at KCM Trade, said prices were likely to hold above $100 while US-Iran negotiations remained inconclusive. He added that prices would remain above $100 as long as physical flows through the Strait of Hormuz remained restricted. Moreover, he said a breakthrough could trigger an $8–12 correction, while escalation could push Brent above $115.
A Reuters survey cited in the source said OPEC output in April fell to its lowest level in more than two decades. This followed disruptions linked to the near-closure of the strait, which prompted producers to curtail exports.
Saudi Aramco Chief Executive Officer Amin Nasser warned on Monday that disruptions to oil exports through the strait could delay a return to market stability until 2027. He said these disruptions could cause losses of about 100 million barrels of oil per week.
The Trump administration said on Monday it planned to loan 53.3 million barrels of crude from the US Strategic Petroleum Reserve to temper the market. In addition, ship-tracking data showed a crude shipment from the reserve was en route to Turkey.
Washington also imposed sanctions on three individuals and nine companies, including firms in Hong Kong, the United Arab Emirates and Oman. These sanctions were for allegedly facilitating Iranian oil shipments to China ahead of Trump’s planned meeting with Chinese President Xi Jinping.
