Oil prices rose on Tuesday after U.S. President Donald Trump indicated that the ceasefire efforts involving Iran were in a fragile state. His remarks came after he dismissed Tehran’s counterproposal aimed at ending the conflict, raising concerns that tensions in the Middle East could persist for an extended period and continue to disrupt global energy markets.
International benchmark Brent crude futures for July delivery increased by 0.30 percent to trade at USD 104.51 per barrel, while U.S. West Texas Intermediate futures for June delivery climbed 0.31 percent to USD 98.40 per barrel. These gains reflected growing investor anxiety over the possibility of further instability in one of the world’s most critical oil-producing regions.
President Trump described the ceasefire situation as “unbelievably weak” and strongly criticized Iran’s proposal to end the war, dismissing it as inadequate. He further emphasized the uncertainty surrounding the negotiations by comparing the ceasefire’s condition to a patient with only a minimal chance of survival. His comments reinforced oil market fears that diplomatic efforts may fail, potentially prolonging the conflict and sustaining pressure on oil supply chains.
Since the outbreak of the U.S.- and Israel-led war against Iran on February 28, both Brent crude and West Texas Intermediate prices have surged by more than 40 percent. The sharp increase highlights the significant impact geopolitical tensions have had on global commodity markets, particularly as traders closely monitor developments in the Middle East.
Financial analysts have also warned that oil markets are likely to remain highly volatile. In a market note, Citigroup stated that crude prices could rise even further if negotiations between the United States and Iran continue to face difficulties. The bank noted that unresolved diplomatic tensions would heighten concerns over supply disruptions and broader regional instability.
Oil Market Outlook
Meanwhile, Dragonfly Chief Intelligence Officer Henry Wilkinson said that a renewed escalation of the conflict remains a strong possibility. Wilkinson added that Trump may seek support from Chinese President Xi Jinping during upcoming discussions between China and the United States, potentially urging Beijing to pressure Iran into accepting American terms for a ceasefire agreement.
