Satellite image of the Salalah oil storage fire in Oman. An Iranian drone strike on March 11 sparked a fire and sent a plume of smoke into a strategic port in the Gulf of Oman, amid a broader conflict with Iran. Photographed on March 13, 2026.
Gallo Images | Orbital Horizon | Copernicus Sentinel Data 2026 | Getty Images
Oil prices rose on Tuesday after US President Donald Trump said a cease-fire with Iran was on life support after rejecting Tehran’s counter-offer to end the war, suggesting the Middle East conflict could be prolonged.
international benchmark brent crude oil As of 7:57 a.m. ET, July futures were up 3.2% at $107.58 a barrel. us West Texas Intermediate Futures In June, the price rose 3.3% to $101.37 per barrel.
brent crude oil price
President Trump told reporters that the ceasefire situation is “incredibly weak” and that Iran’s counteroffer to end the conflict is “garbage.”
“You could say a cease-fire is a massive life-saving measure. Doctors come in and say, ‘Doctor, your loved one has about a 1% chance of survival,'” Trump said.
WTI and Brent have both risen more than 40% since the US-Israel-led war against Iran began on February 28th. “Oil prices are volatile and could rise further if the U.S.-Iran deal remains difficult,” Citi said in a note.
Henry Wilkinson, chief information officer at geopolitical and security intelligence services firm Dragonfly, told CNBC’s “Squawk Box Asia” on Tuesday that re-escalation of the Iran war is certainly a possibility, adding that President Trump could ask Chinese President Xi Jinping to pressure Iran into accepting U.S. terms during China-US talks later this week.
Saudi Aramco Chief Executive Amin Nasser warned on Monday that it would take until 2027 for the oil market to normalize if the Strait of Hormuz remains closed since mid-June.
“Even if the Strait of Hormuz opens today, it will still take months for the market to regain balance. If the opening is delayed by a few more weeks, normalization could last until 2027,” Nasser, who heads the world’s largest oil company, told investors at the company’s first-quarter results conference.
—CNBC’s Kevin Breuninger and Spencer Kimball contributed to this report.
