Kamal Ghorui
Oil prices extended their rally on Tuesday amid rising tensions in the Middle East, as markets remained cautious ahead of Donald Trump’s deadline for Tehran to reopen the Strait of Hormuz. Brent crude futures increased by 57 cents, or 0.5%, to $110.34 a barrel at 1202 GMT, while US West Texas Intermediate crude futures rose by $1.26, or 1.1%, to $113.67.This comes after US President Donald Trump has threatened to rain “hell” on Tehran if it does not comply with his deadline of 8 pm EDT on Tuesday to reopen the strait. “Taken out in one night,” he warned, stating further action would follow if no agreement is reached.Iran, responding to a US proposal conveyed through mediator Pakistan, rejected the idea of a ceasefire, insisting instead that a permanent end to the war was required, Reuters reported. It also pushed back against demands to reopen the waterway.The Strait of Hormuz was effectively closed by Iranian forces after US .and Israeli attacks began on February 28, disrupting a route that typically handles around 20% of global oil flows.Earlier on Monday, Iran’s Revolutionary Guards halted two Qatari liquefied natural gas tankers and instructed them to hold position without explanation, according to sources. Shipping data has indicated limited movement of vessels through the strait since last Thursday.The United Nations Security Council is scheduled to vote on Tuesday on a resolution aimed at protecting commercial shipping in the Strait of Hormuz, though the proposal has been significantly weakened after China opposed any authorisation of force, diplomats said.Tensions in the wider region also continued. Explosions were reported in Damascus and surrounding areas on Tuesday, triggered by the Israeli interception of Iranian missiles, according to Syrian state television.Saudi Arabia said it intercepted and destroyed seven ballistic missiles fired towards its Eastern Region, with debris landing near energy facilities, the defence ministry said.Global crude markets have come under pressure from the conflict, with spot premiums for US WTI crude surging to record levels as refiners in Asia and Europe seek alternative supplies amid disrupted Middle Eastern flows.
