WTI crude futures jumped nearly 4% to climb back above $100 a barrel on Tuesday, extending their rally for a seventh straight session and marking the highest level since early April. Markets are now focused on how US President Trump will respond to Iran’s latest proposal to end the conflict and reopen the Strait of Hormuz. Early indications suggest the President is dissatisfied with the offer, with Tehran’s nuclear program remaining a central obstacle in the talks.
Although a ceasefire has largely held since early April, reciprocal blockades imposed by Iran and the US have pushed traffic through the Strait of Hormuz close to zero. The chokepoint normally handles about 20% of global energy flows, heightening fears of supply disruptions. Now in its ninth week, the conflict has driven energy prices sharply higher and tightened supply across key markets worldwide. The International Energy Agency has warned that the situation could trigger an unprecedented supply shock, while also increasing the risk of a broader slowdown in global demand.
