WTI crude futures traded above $113 per barrel on Tuesday, hovering near their highest closing level since June 2022, as the deadline set by President Donald Trump for Iran to accept a deal or face intensified attacks drew near. Trump warned that he would order strikes on Iranian power plants and bridges if his conditions were not met by 8 p.m. Eastern Time on Tuesday, including the reopening of the Strait of Hormuz. These threats overshadowed indications that the United States and Iran, working through mediators, may be edging closer to a ceasefire arrangement.
Tehran, for its part, warned that it would respond to any US strikes on civilian infrastructure by escalating attacks on energy facilities across the Gulf, a move that could exacerbate the global energy shortage. Iran’s Foreign Ministry also rejected a temporary truce proposal conveyed through Pakistani mediators, insisting that any agreement must include a permanent ceasefire and the lifting of sanctions.
