Oil Jumps, Brent Tops $91 as US Rules Out Iran Truce Extension
Oil prices climbed Tuesday as US President Donald Trump’s rejection of an extension to a framework agreement with Iran and a reported tanker detention near the Strait of Hormuz renewed fears of supply disruptions.
The 60-day period associated with the Iran-US interim peace deal ended Monday without a breakthrough, with Washington rejecting an extension and a senior Iranian official saying the US had a few weeks to meet the agreement’s terms before further talks.
Brent crude futures for October delivery traded at $91.16 per barrel, up 0.3% from the previous close of $90.87. US benchmark West Texas Intermediate (WTI) crude futures for September delivery traded at $84.10 per barrel, up 0.03% from $84.07.
Trump said Monday 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.
The remarks came as the 60-day negotiating period under the framework approached its end without a broader agreement.
Asked whether Washington and Tehran were closer to a final deal, Trump said Iran was willing to negotiate but was not prepared to accept the terms he considered necessary.
“They want to make a deal, but they are not going to make the kind of a deal that I feel is necessary,” Trump said.
Trump also said the US had established “total control” over the Strait of Hormuz and defended his recent suggestion that the strategic waterway could be declared US territory.
He said US forces effectively controlled the strait through a blockade.
“We have a blockade. We control it with the blockade, and I like the idea of declaring it a territory. We have total control over the Strait,” Trump said.
He added that US actions were allowing millions of barrels of oil to move through the region each week.
Trump’s comments added to uncertainty over the security of oil shipments through the strait and supported crude prices.
Concerns over shipping through the strategic waterway were further heightened by reports that a tanker belonging to an Emirati company had been detained near Iran’s southern Qeshm Island while transiting the Strait of Hormuz.
Iran’s semi-official Fars News Agency reported Monday, citing maritime navigation data, that the vessel had been stopped while passing through the strait.
The agency did not identify the tanker or its Emirati owner.
Fars reported that tankers seeking safe passage through the strait “must follow a route designated by Iran, pay service fees and obtain Iranian authorization.”
There was no official statement from Iranian or Emirati authorities on the reported detention as of 1700 GMT Monday.
The report adds to concerns over the safety of commercial shipping through the Strait of Hormuz, where tensions have risen sharply amid the US-Iran conflict.
The waterway is a key route for global oil and gas shipments, making any prolonged disruption a potential threat to energy supplies and prices.
With diplomatic efforts still failing to produce a broader agreement between Washington and Tehran, developments around the Strait of Hormuz are likely to remain a major driver of oil prices.
Oil Prices Inch Higher, Brent Nears $90 on Peace Talks Doubt
