Oil Continues to Rise as Trump Renewed Pressure on Iran

SadaNews - Oil prices have risen for the third consecutive day after President Donald Trump renewed pressure on Iran to reach a deal that would end weeks of conflict and reopen the vital Strait of Hormuz.

Brent crude advanced above $111 a barrel, after adding about 8% last week, while West Texas Intermediate climbed above $108.

Trump tweeted on Sunday: "For Iran, time is running out, and it’s best they act quickly, or there will be nothing left of them. Time is of the essence!".

Oil prices have increased by more than 50% since the U.S. and Israel first struck Iran at the end of February, leading to decreased flows through the Strait of Hormuz and reduced supplies from some Gulf producers.

Morgan Stanley stated last week that the market is in a "race against time", as the factors that have capped price increases driven by the conflict will come under pressure if the vital waterway remains closed until June.

Sharou Chanana, chief investment strategist at Saxo Markets in Singapore, noted that "markets have seen many headlines about potential solutions, but no reliable mechanism has yet been put in place to completely eliminate the risks to Hormuz supplies," adding: "The risk premium is likely to remain high."

The pressure on supplies increased after the Trump administration allowed a waiver on sanctions for Russian crude sales to expire, despite India's request for an extension.

Hormuz and Supply Pressures

Energy facilities in the Arabian Gulf were targeted over the weekend, with a drone attack causing a fire near a nuclear facility in the UAE, highlighting the fragility of the ceasefire.

Reports from semi-official Iranian media indicated that the conflicting parties remain far apart. The Iranian news agency Mehr stated that Washington has not made any "tangible concessions", while seeking concessions that it failed to obtain during the war, which will lead to a deadlock in negotiations.

Trump met on Saturday with Vice President J.D. Vance, White House envoy to the region Steve Witkoff, Secretary of State Marco Rubio, and CIA Director John Ratcliffe to discuss the war, according to Axios on Sunday. He is expected to meet again with his national security team on Tuesday.

Trump told Axios: "We want to reach an agreement," adding that he is awaiting an updated Iranian proposal. He added: "They are not where we want them to be. They will have to get there, or they will face a harsh blow, and they don’t want that."

In related news, a member of Israel's security cabinet for Prime Minister Benjamin Netanyahu, Zeev Elkin, stated that the country is prepared to resume strikes on Iran if Trump decides to do so. He said in a Kan radio interview: "We have targets we want to hit."

Since the ceasefire began on April 8, Trump has repeatedly threatened to resume the bombing campaign that started on February 28.