Satellite tv for pc view of the Salalah oil storage hearth in Oman. An Iranian drone strike on March 11 ignited the blaze, sending a plume over the Gulf of Oman’s strategic port amid the broader battle with Iran. Imaged March 13, 2026.
Gallo Photographs | Orbital Horizon | Copernicus Sentinel Information 2026 | Getty Photographs
Oil costs rose Tuesday as optimism fades that the U.S. and Iran will attain a deal to finish their standoff and reopen the Strait of Hormuz.
Worldwide benchmark Brent crude futures for July gained 3.6% to $107.98 a barrel as of 11:16 a.m. ET. U.S. West Texas Intermediate futures for June rose 3.8% to $101.79 per barrel.
Brent crude costs
President Donald Trump has rejected Iran’s counteroffer to a U.S. proposal to finish the battle. Trump on Monday dismissed Tehran’s provide as “rubbish” and warned that the ceasefire is on “life assist.”
“We’re in a stalemate, a frozen battle,” Amos Hochstein, who served as a senior advisor to former President Joe Biden, informed CNBC’s “Squawk Field.”
“Within the meantime, the straits are closed so we’re in a no conflict, no oil, no straits situation,” Hochstein stated. A breakthrough is unlikely this week as Trump heads to China to satisfy with President Xi Jinping, he stated.
Oil costs will doubtless stay elevated, in a spread of $90 to $100 per barrel, by the remainder of the yr and into 2027 even when Hormuz reopens in early June, Hochstein stated. The oil market is heading towards a cliff if the U.S. and Iran do not strike a deal by June, he stated.
“While you fall off the cliff in oil and vitality, it is very laborious to get again up,” Hochstein stated. “After which it isn’t about normalizing, then it takes a very very long time.”
Because the U.S. and Israeli-led conflict in opposition to Iran began on Feb. 28, WTI and Brent are each up greater than 40%. “Oil costs have been unstable and might rise additional if US-Iran dealmaking stays thorny,” Citi stated in a word.
Re-escalation within the Iran conflict is definitely attainable, Henry Wilkinson, geopolitical and safety intelligence service agency Dragonfly’s chief intelligence officer, informed CNBC’s “Squawk Field Asia” on Tuesday, including that Trump might ask Chinese language President Xi Jinping to press Iran to just accept U.S. phrases later this week throughout talks between China and the U.S.
The oil market will take till 2027 to normalize if the Strait of Hormuz stays blocked past mid-June, Saudi Aramco CEO Amin Nasser warned Monday.
“If the Strait of Hormuz opens immediately, it is going to nonetheless take months for the market to rebalance, and if its opening is delayed by a number of extra weeks, then normalization will final into 2027,” Nasser, who heads the world’s largest oil firm, informed buyers on the corporate’s first-quarter earnings name.
— CNBC’s Kevin Breuninger and Spencer Kimball contributed to this report.
