Oil Tops $105 in Reaction to Ceasefire on Life Support Talk
Oil prices increased on Tuesday, with Brent topping $105 per barrel as the market reacted to a cease-fire on life support from the United States President, Donald Trump.
Brent crude futures rose on Tuesday, climbing above $105 a barrel after President Trump cast doubt on the durability of a ceasefire with Iran, renewing concerns over tensions in the Middle East.
International benchmark Brent crude traded at $105.42 per barrel, up around 1.2% from the previous close of $104.21. US benchmark West Texas Intermediate (WTI) increased about 1.4% to $99.47 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 is on “massive life support,” calling Tehran’s response to Washington’s latest proposal 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,” referring to the response Iran sent Pakistani mediators on Sunday.
The remarks heightened concerns that geopolitical tensions could persist in the Middle East, home to the majority of the world’s oil reserves, supporting upward momentum in oil prices.
Trump also criticized the Iranian side for taking four days to deliver what he described as a “very simple” response. He claimed the proposal initially included broad assurances on nuclear activity, but that Tehran later withdrew them.
Meanwhile, Trump has grown frustrated with Iran’s handling of negotiations and is now more seriously considering resuming military actions that have been halted since April, according to a report published Monday.
The US president is frustrated by Iran’s continued closure of the Strait of Hormuz, as well as what he believes to be division within Iran’s senior cadres, CNN reported, citing anonymous sources familiar with his discussions.
CNN reported that Trump met his national security team on Monday to discuss options on Iran, and anonymous sources told the news outlet that a decision on resuming military operations is unlikely to be made before the US president departs for China on Tuesday afternoon.
