Trump's Iran Deal Rejection Sparks Oil Price Surge Amid Strait of Hormuz Tensions

Oil prices surged on Tuesday as US President Donald Trump's rejection of an extension to the Iran framework agreement and reported tensions in the Strait of Hormuz fueled fresh concerns over global oil supplies.

The international benchmark Brent crude futures for October delivery traded at $91.16 per barrel, up 0.3% from the previous close of $90.87, while US benchmark West Texas Intermediate (WTI) crude futures for September delivery traded at $84.10 per barrel, up 0.03%.

Trump stated that he was not seeking an extension of the June framework agreement with Iran, which was intended to pave the way for negotiations to end the war. He emphasized that Iran wanted to negotiate but was not prepared to accept the terms necessary for a deal, citing 'They want to make a deal, but they are not going to make the kind of a deal that I feel is necessary.'

Tensions in the Strait of Hormuz were further heightened by reports of a tanker belonging to an Emirati company being detained near Iran's southern Qeshm Island while transiting the strait. The waterway is a key route for global oil and gas shipments, making any prolonged disruption a potential threat to energy supplies and prices.