OIL prices extended their upward momentum as efforts to end the conflict between the United States and Iran remained deadlocked, while key shipping lanes through the Strait of Hormuz continued to operate under severe restrictions, limiting global energy supplies.
A US official said President Donald Trump was dissatisfied with Iran’s latest proposal aimed at resolving the war, further dampening prospects for a breakthrough in negotiations.
Citing Iranian sources, Reuters reported on Tuesday that Tehran had proposed postponing discussions on its nuclear programme until hostilities cease and disputes over maritime shipping in the Gulf are resolved.
However, Washington insists nuclear issues must be addressed immediately, leading to continued diplomatic stalemate.
The disruption has been compounded by Iran’s restrictions on shipping through the Strait of Hormuz, a critical route through which roughly 20 per cent of global oil and gas supplies pass. The United States has also maintained sanctions on Iranian ports, further constraining flows.
Brent crude futures for June delivery rose 45 cents, or 0.4 per cent, to US$108.68 a barrel at 0051 GMT, following a 2.8 per cent gain in the previous session that marked the highest closing level since 7 April. The contract has now climbed for seven consecutive trading days.
US West Texas Intermediate (WTI) crude for June delivery increased 58 cents, or 0.6 per cent, to US$96.96 a barrel, after rising 2.1 per cent in the previous session.
Fawad Razaqzada said physical supply disruptions, rather than political rhetoric, were now driving market sentiment.
“For traders of oil, it is no longer rhetoric that matters, but the physical flow of crude through the Strait of Hormuz, and at present those flows remain constrained,” he said in a note.
He added that even in the event of a political resolution, production disruptions and logistical challenges could mean a recovery period lasting several months.
Shipping data indicates continued disruption in the region, with six Iranian oil tankers reportedly forced to turn back due to US sanctions. However, an LNG tanker managed by Abu Dhabi National Oil Company (ADNOC) successfully transited the Strait and was later tracked near India.
Before the escalation of the conflict on 28 February, between 125 and 140 vessels typically passed through the Strait of Hormuz each day, underscoring the scale of the current disruption to global energy flows. - April 28, 2026
