Oil Market Rallies on Geopolitical Hiccups
The global oil market rallied over fading hopes for a lasting ceasefire between the US and Iran, renewed concerns that prolonged geopolitical tensions in the Middle East could threaten global oil supplies.
International benchmark Brent crude traded at $107.61 per barrel, up around 3.23% from the previous close of $104.21. US benchmark West Texas Intermediate (WTI) increased about 3.43% to $101.44 per barrel, compared with $98.07 in the previous session.
Prices gained after US President Donald Trump said on Monday that the ceasefire with Iran was on “massive life support,” describing Tehran’s response to Washington’s latest proposal as a “piece of garbage.”
Speaking to reporters at the Oval Office, Trump said the ceasefire was in an “unbelievably weak” state. “I would call it the weakest right now, after reading that piece of garbage,” he said, referring to the response Iran sent to Pakistani mediators on Sunday.
The remarks heightened concerns that geopolitical tensions could persist in the Middle East, which holds the majority of the world’s oil reserves, supporting upward momentum in crude prices.
As optimism over a durable ceasefire weakened, investors also turned their focus to US inflation data due later Tuesday for further signals on the economic outlook and the Federal Reserve’s policy path.
Analysts said tensions in the Middle East have so far had a limited impact on the US economy, but warned that prolonged geopolitical risks could weigh more heavily on economic activity if they persist.
Markets are also closely watching Trump’s planned visit to China this week, where he is expected to meet Chinese President Xi Jinping on Thursday. MTN Nigeria Drives South African Telecom Group Q1 Earnings Growth
