Iran Deadline Passes as Oil Prices Continue to Soar Amid Strait of Hormuz Tensions

Oil prices were volatile on Tuesday as Brent futures flatlined at $109.48 per barrel, while US crude surged to its highest close since June 2022, driven by rising tensions in the Strait of Hormuz.

The deadline set by President Donald Trump for Iran to open the strait or face attacks expired, and Iran showed no signs of complying with the ultimatum.

WTI futures rose $2.58, or 2.3%, to $114.99 per barrel as analysts at Gelber & Associates said WTI crude is extending gains due to a prolonged disruption scenario rather than a near-term resolution.

The premium of the WTI front-month over the second-month was on track to close at a record high for a third day in a row, signaling tightness in the prompt market as refiners compete for immediately available barrels.