West Texas Intermediate (WTI) oil prices extended gains for a second consecutive day, trading around $95.80 during Asian hours on Tuesday, as escalating tensions in the Middle East raised concerns over the security of the world's most critical energy transit route [1]. According to a CNN report cited in the article, US President Donald Trump has expressed growing frustration with stalled negotiations to end regional hostilities, and insiders indicate the administration is shifting toward a resumption of military action, marking a significant escalation from previous weeks [1].
The situation intensified after President Trump formally rejected Tehran’s latest peace proposal, describing the current US-Iran ceasefire as being on 'massive life support.' This breakdown in talks has heightened fears that the Strait of Hormuz, the primary artery for global oil shipments, will remain effectively closed for the foreseeable future [1]. Mohammad Bagher Ghalibaf, Speaker of the Iranian Parliament, warned that Iran's military is in full readiness to retaliate against any future strikes, further straining the fragile ceasefire. Tehran’s demands for a permanent truce reportedly include an immediate end to the US naval blockade and the lifting of international economic sanctions, while seeking to retain authority over maritime traffic in the key shipping route [1].
The crisis has had a tangible impact on oil supply. A Reuters survey published Monday found that OPEC oil output plunged in April to its lowest level in over two decades, as the near-total closure of the Strait of Hormuz forced major producers to curtail exports due to unreliable access to global markets [1]. Saudi Aramco CEO Amin Nasser warned that disruptions to oil exports through the strait could delay a return to market stability until 2027, noting the industry is currently facing the loss of about 100 million barrels of oil per week. This has left the energy sector on high alert for a prolonged period of volatility [1].
CONCLUSION
WTI crude prices have surged near $96 amid escalating Middle East tensions and the effective closure of the Strait of Hormuz, a key global oil transit route. With OPEC output hitting a two-decade low and industry leaders warning of prolonged instability, the market faces significant supply risks and heightened volatility.