Brent Rises Almost 3.5% to Over $107 Amid US-Iran Tensions

The July Brent crude oil barrel rose by almost 3.5% on Tuesday, surpassing $107 in the London futures market due to renewed tensions between the United States and Iran, which diminished investors' hopes for a near peace deal. The North Sea crude, a European benchmark, advanced by exactly 3.42% and stood at $107.77 at the close of trading on the London Intercontinental Exchange (ICE), an increase of $3.56 compared to the last session, when it closed at $104.21. Brent followed its upward trend after US President Donald Trump called Iran's latest response to the US peace proposal 'totally unacceptable' and stated that the ceasefire in place with Iran since April is 'on life support.' In this context, the US Energy Information Administration (EIA) stated on Tuesday that the Strait of Hormuz could remain closed until at least the end of May, increasing market fears of prolonged supply disruptions. This strategic passage between the Persian Gulf and the Gulf of Oman, through which 20% of global crude oil maritime traffic passes, has remained practically blocked since February 28th, with the start of the conflict in the Middle East. 'With this key maritime route practically closed and both sides still far apart on their main demands, a prompt resolution is no longer likely and, due to the consequent oil rebound, sentiment in other markets, especially those whose economy depends on oil imports, has been affected,' wrote StoneX market analyst Fawad Razaqzada in his bulletin on Tuesday.