Rising Oil Prices as the War Drags On and the Strait of Hormuz Remains Closed

SadaNews - Oil prices continued to rise today, Tuesday, amidst the stalled international efforts to end the war between the United States and Iran, increasing concerns in global markets.

This rise comes as the closure of the Strait of Hormuz continues almost completely, a vital corridor for energy transport, hindering the flow of oil supplies from major production areas in the Middle East to buyers around the world, and fueling fears of a potential supply shortage.

An American official stated that President Donald Trump is dissatisfied with the latest Iranian proposal to end the war.

Iranian sources revealed that Tehran's proposal avoids addressing its nuclear program until the fighting ceases and maritime disputes in the Gulf are resolved.

Trump's dissatisfaction with the Iranian offer could lead the conflict to a deadlock, as Iran closes navigation through the Strait of Hormuz, which has typically accounted for nearly 20 percent of global oil and gas consumption, while the United States continues to impose control over the passage of ships coming from Iranian ports.

Brent crude futures for June delivery rose by 45 cents, or 0.4 percent, to $108.68 a barrel by 00:51 GMT after rising 2.8 percent in the previous session, marking its highest closing level since April 7. The contract rose for the seventh consecutive day.

West Texas Intermediate (WTI) crude for June delivery increased by 58 cents, or 0.6 percent, to $96.96, after rising 2.1 percent in the previous session.

Foad Rizkzadeh, a market analyst at City Index and Forex.com, stated in a note, "For oil traders, the discourse is no longer what matters, but the actual flow of crude through the Strait of Hormuz, and at the moment, this flow remains limited."

He added that even if a solution is reached, production disruptions and logistical challenges mean that recovery could take months.

Ship tracking data revealed significant disruptions in the region, as six Iranian oil tankers were forced to turn back due to American control.