Oil prices extended their gains on Tuesday following comments from U.S. President Donald Trump, who stated that the ceasefire with Iran was on 'life support' after he rejected Tehran's counterproposal to end the ongoing war. Trump described the ceasefire as 'unbelievably weak' and dismissed Iran's offer as 'garbage,' emphasizing the slim chances for peace by saying, 'your loved one has approximately a 1% chance of living' [1].
In response to these developments, international benchmark Brent crude futures for July increased by 0.30% to $104.51 per barrel, while U.S. West Texas Intermediate (WTI) futures for June rose 0.31% to $98.40 per barrel [1]. Since the U.S. and Israeli-led war against Iran began on February 28, both WTI and Brent have surged more than 40% [1].
Citi noted in a research note that oil prices have been volatile and could rise further if negotiations between the U.S. and Iran remain difficult [1]. Henry Wilkinson, Chief Intelligence Officer at Dragonfly, told CNBC that a re-escalation in the Iran war is possible and suggested that Trump may ask Chinese President Xi Jinping to pressure Iran to accept U.S. terms during upcoming talks between China and the U.S. later this week [1].
Additionally, a satellite image confirmed that an Iranian drone strike on March 11 caused a fire at the Salalah oil storage facility in Oman, sending a plume over the Gulf of Oman’s strategic port and highlighting the ongoing risks to regional oil infrastructure amid the conflict [1].
CONCLUSION
Oil prices have climbed sharply as the U.S.-Iran ceasefire appears increasingly unlikely, with President Trump rejecting Iran's latest proposal and warning of further conflict. Market analysts suggest continued volatility and potential for further price increases if diplomatic efforts fail. The situation remains fluid, with geopolitical risks keeping upward pressure on oil markets.