Oil prices climbed on Tuesday as markets weighed the risks to global supply following Iran’s denial of any negotiations with the United States, contradicting claims by U.S. President Donald Trump that progress toward a deal had been made.
Brent crude rose $1.25, or 1.3%, to $101.19 a barrel, while U.S. West Texas Intermediate (WTI) gained $2.15, or 2.4%, to $90.28. Analysts said the market remains unsettled despite a temporary pause in attacks on Iranian energy facilities.
The Strait of Hormuz, a critical chokepoint for roughly 20% of the world’s oil and liquefied natural gas shipments, has been effectively blocked due to ongoing hostilities, creating what the International Energy Agency described as the largest supply disruption in history.
“The market is cautiously recovering, but the Strait of Hormuz is far from clear,” said Tim Waterer, chief analyst at KCM Trade.
On Tuesday, Iran launched waves of missiles into Israel, dismissing U.S. claims of negotiations as “fake news.” Analysts from BCA Research warned that while there has been a tentative de-escalation, the risk to energy supply remains high.
Macquarie bank noted that if the Strait of Hormuz remains effectively closed through April, Brent crude could surge to $150 a barrel, surpassing the previous all-time high of $147 set in 2008.
The spike in tension comes amid attacks on Iran’s energy infrastructure, including a gas company office and pressure-reduction station in Isfahan, and a projectile striking a gas pipeline feeding a power station in Khorramshahr, according to Fars News Agency.
The developments underscore the fragile balance in the Gulf, with energy markets highly sensitive to any escalation in the ongoing U.S.-Iran-Israel conflict.
