Trump's Rejection of Iran Deal Triggers Oil Price Surge
Oil prices surged on Tuesday as President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz, keeping supply risks elevated. Brent oil was up 1.4% near $106.80 and US WTI gained 1% around $93.50 in morning Asian trade.
The Strait of Hormuz remains effectively closed after Trump's rejection of Iran's proposal to reopen it within 7 days. Commercial shipping traffic is running at roughly 75-90% below pre-conflict levels, according to the UK Maritime Trade Operations Centre (UKMTO).
The closure has forced most tankers to idle or use longer detours, while Iran's Gulf Strait Authority has warned ships against using unauthorised routes under threat of consequences.
The Red Sea and Bab al-Mandab Strait are also under growing pressure. Saudi Arabia has leaned more heavily on pipelines to the Red Sea, but this gateway is now strained from Houthi attacks that have cut weekly transits to about 25 vessels from higher pre-war levels.