NEW YORK: Oil prices rose more than 3 per cent on Tuesday as stark differences between the US and Iran over a proposal to end the war in the Middle East raised concerns that supply disruptions upending the global oil market are likely to be prolonged.
Brent crude futures gained $3.10, or 2.97pc, to $107.31 a barrel by 2:01 p.m. ET (1801 GMT), and US West Texas Intermediate futures were up $3.56, or 3.63pc, at $101.63. Both benchmarks climbed nearly 3pc on Monday.
Donald Trump said on Monday that ceasefire talks with Iran were on “life support,” pointing to disagreements over Tehran’s demands of a cessation of hostilities on all fronts, the removal of a US naval blockade, the resumption of Iranian oil sales and compensation for war damage.
Iran also emphasised its sovereignty over the Strait of Hormuz, through which about a fifth of global oil and liquefied natural gas normally flows.
“Markets are doubting that a peace deal is within reach,” StoneX analyst Alex Hodes said.
The US Energy Information Administration (EIA) on Tuesday said it now assumes the strait will be effectively closed through late May. The agency had earlier expected the waterway would be shut through late April. Even after flows resume through the Strait of Hormuz, it will take at least until late 2026 or early 2027 for oil output and trade patterns to return to pre-conflict levels, the EIA said.
Published in Dawn, May 13th, 2026
