Oil prices rose nearly 2% on Tuesday, extending the upward trend from the previous session, as efforts to end the conflict between the United States and Iran remain blocked and traffic through the Strait of Hormuz remains severely restricted, Reuters reports, quoted by News.bg.
Brent futures for June rose $2.32, or 2.1%, to $110.55 a barrel, after a day earlier reporting a 2.8% rise and reaching their highest level since April 7. US light crude oil WTI also rose - by $ 1.80, or 1.9%, to $ 98.17 per barrel.
The main reason for the increase in price remains the ongoing impasse in the negotiations. According to US officials, President Donald Trump is dissatisfied with Tehran's latest proposal to end the war, as it does not resolve the key disputes over its nuclear program and shipping in the Persian Gulf.
Thus, the conflict remains at a standstill - Iran continues to keep the Strait of Hormuz practically closed, and the US maintains a blockade of Iranian ports. It is through this strategic sea corridor that about a fifth of the world's oil and natural gas supplies pass under normal conditions.
Shipping data shows serious disruptions in the region. Six Iranian oil tankers were forced to return due to the US blockade, while only a few vessels managed to pass through the strait. This is far below the usual 125 to 140 daily crossings before the conflict began in late February.
Market analysts warn that there are no real signs of de-escalation yet, and the limited movement of ships through Hormuz is keeping a high risk premium in crude prices. The expectation is that unless a quick political solution is reached, oil will remain permanently high and markets will gradually start to accept the conflict as the new normal.