Oil Nears $90 as Trump Says US 'Semi-Negotiating' with Iran Over Strait of Hormuz
Key Takeaways
- •Brent crude remained above $87 per barrel, marking a fourth straight session of gains driven by geopolitical uncertainty.
- •The Strait of Hormuz transports approximately one-fifth of global oil consumption, making any disruption a major concern for energy markets.
- •President Trump indicated the United States would scale back efforts to reopen the Strait, characterizing negotiations with Iran as limited.
- •Iran is negotiating with Oman to partially reopen the waterway and has outlined six conditions, including a permanent end to hostilities against Iran and its allies.
- •Rising oil prices have intensified inflationary pressures and deepened energy crisis concerns across global economies.
Oil prices climbed for a fourth consecutive session as uncertainty surrounding US–Iran relations and the status of the Strait of Hormuz continued to unsettle markets.
Brent crude, the international benchmark, held above $87 per barrel on Tuesday morning, reversing hopes from the previous week that prices might be easing. The Strait of Hormuz carries roughly one-fifth of global oil consumption, making any disruption to the narrow waterway a focal point for energy markets worldwide. Elevated oil prices in recent months have intensified inflationary pressures and deepened energy crisis concerns across global economies.
The latest upward move follows President Donald Trump's issuance of sweeping new demands on Iran, including compensation for individuals the Islamic Republic has killed in conflicts. Tehran had previously reiterated its own calls for reparations as part of negotiations to wind down the conflict.
Trump indicated that the United States would scale down the intensity of its efforts to reopen shipping through the Strait of Hormuz, telling Axios: "We are only semi-negotiating with them. We are just watching Iran with its huge inflation and the fact they have no money." He added: "It will work out. It always works out. It's like a chess game."
Separately, Tehran is in negotiations with Oman to partially reopen the narrow waterway. Oman has historically served as a diplomatic intermediary between Iran and Western governments, and its involvement underscores the complexity of securing even a partial reopening. Iran has outlined six conditions the US must meet, chief among them a permanent end to the war and aggression against Iran and its allies in Lebanon, Palestine, Yemen, and Iraq.
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