Oil Tops $100 as Iran Ceasefire Hopes Diminish

Oil prices jumped higher on Tuesday as President Donald Trump dismissed Iran's latest offer to end the month-old ceasefire with the United States and Israel, raising fresh concerns that the conflict could drag on and further disrupt global energy supplies. Brent crude futures rose nearly 4 percent to around $108 a barrel, while West Texas Intermediate climbed above $101, marking a return to triple digits for the American benchmark after weeks of volatility tied to fighting that began in late February.

Trump told reporters that the truce was "on massive life support," likening its chances of survival to a patient with a 1 percent outlook. He called Iran's counterproposal "garbage," pointing to deep gaps over demands that include a full halt to hostilities, lifting a U.S. naval blockade, allowing Iranian oil exports to resume, and addressing compensation for war damage. Tehran has insisted on its sovereign rights over the Strait of Hormuz, the narrow waterway through which roughly one-fifth of the world's oil and liquefied natural gas normally passes.

The renewed tensions sent ripples through financial markets. European stocks slipped, U.S. futures pointed lower, and even South Korea's KOSPI index retreated from near-record levels as investors weighed the risk of prolonged supply shocks. Analysts noted that six-month Brent contracts had already risen in recent sessions, reflecting bets that any lasting disruption could keep prices elevated well into next year.

OPEC production data released this week showed output in April at its lowest level in more than two decades, a direct result of curtailed exports linked to the near-closure of the strait. Saudi Aramco chief Amin Nasser warned that restoring normal market balances could take until 2027 if the chokepoint remains restricted. Energy traders said a genuine breakthrough might trigger an $8 to $12 drop in prices, but escalation or renewed blockade threats could push Brent back toward $115.

Trump is scheduled to meet Chinese President Xi Jinping later this week, with expectations limited that Beijing will press Tehran hard enough to accept Washington's terms. Markets have priced in little progress on either the Iran file or broader trade issues, leaving investors focused instead on incoming U.S. inflation figures and the broader economic fallout from sustained high energy costs.