Global oil prices continued their upward momentum, with Brent crude rising above $108 per barrel, driven by escalating geopolitical tensions and disruptions in key shipping routes.
Brent crude, the international benchmark, increased by 45 cents to reach $108.68 per barrel, extending gains from the previous day when it had already surged by 2.8 percent. Meanwhile, U.S. West Texas Intermediate (WTI) crude also saw an increase of 58 cents, trading at $96.96 per barrel after posting a 2.1 percent rise on Monday.
The recent price surge reflects growing concerns over instability in the Middle East, particularly tensions surrounding Iran and ongoing, yet stalled, negotiations between Iran and the United States. Talks aimed at reaching an agreement have faced significant setbacks, contributing to uncertainty in global energy markets.
A major factor behind the price increase is the restricted maritime traffic through the Strait of Hormuz, one of the world’s most critical oil transit chokepoints. Reduced shipping activity in this narrow passage has raised fears of supply disruptions, pushing prices higher.
According to a source from the White House, U.S. President Donald Trump has rejected a new proposal from Iran, arguing that it fails to adequately address Tehran’s nuclear program. The proposal reportedly ties broader issues, such as ending hostilities and resolving tensions in the Strait of Hormuz, to the nuclear dispute, further complicating negotiations.
Diplomatic efforts, mediated by Pakistan, have so far failed to produce a breakthrough. As a result, uncertainty remains high, and the Strait of Hormuz is at risk of staying partially closed or heavily restricted.
With no immediate resolution in sight, analysts expect oil markets to remain volatile, as geopolitical developments continue to influence supply expectations and global pricing trends.
