Oil prices climbed sharply on Tuesday as the world watched anxiously for a U.S.-imposed deadline for Iran to reopen the Strait of Hormuz, the crucial waterway through which roughly a fifth of global oil passes.
President Donald Trump warns that Iran could face attacks on bridges and power plants if Tehran fails to comply.
By early trading, Brent crude had risen $1.74, or 1.6%, to $111.51 a barrel, while U.S. West Texas Intermediate crude jumped $3.45, or 3.1%, to $115.86.
Trump has set a deadline of 8 p.m. EDT Tuesday (00:00 GMT Wednesday), threatening to rain “hell” on Tehran if the strait remains closed. But Iran, rejecting a ceasefire proposal mediated by Pakistan, insisted that only a permanent end to the conflict would satisfy its terms.
The standoff has left the oil market on edge. Priyanka Sachdeva, senior market analyst at Phillip Nova, said, “Oil is holding its gains because the battlefield risk is no longer theoretical. Attacks on energy and shipping assets continue, and even if the war ends, damage to infrastructure could sideline barrels for months.”
Exports from Gulf producers have already been hit hard, with the strait effectively closed since 28 February following U.S. and Israeli strikes.
Tim Waterer, Chief Market Analyst at KCM Trade, noted, that “Clock-watching is now playing almost as big a role in oil markets as the fundamentals themselves in the run-up to Trump’s ultimatum. Supply worries from Hormuz and damaged facilities are keeping prices elevated.”
Diplomatic efforts continue, with the United Nations Security Council expected to vote on a resolution to protect commercial shipping in the strait. However, the measure has been watered down after China opposed authorising force.
Meanwhile, regional tensions show no sign of easing. Explosions were reported near Damascus as Israel intercepted Iranian missiles, while Saudi Arabia said it destroyed seven ballistic missiles aimed at its Eastern Region, with debris falling near energy facilities.
The conflict is squeezing global oil supply. Spot premiums for U.S. crude have hit record highs as Asian and European refiners scramble for alternatives.
Saudi Aramco has raised the official selling price of Arab Light crude to Asia for May delivery, setting a record premium of $19.50 above the Oman/Dubai average.
Adding to the squeeze, Russia reported damage to the Caspian Pipeline Consortium terminal after Ukrainian drone attacks, affecting 1.5% of global oil supply.
OPEC+ agreed on Sunday to lift oil output quotas by 206,000 barrels per day in May, but the increase is largely symbolic, as strait closures are preventing key producers from exporting the extra oil.
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Iran said on Sunday (10 May) that it had sent its response to a U.S. proposal aimed at launching peace talks to end the war, as signs of tentative movement emerged around the Strait of Hormuz despite renewed security incidents across the Gulf.
Slovak Prime Minister Robert Fico has cited Azerbaijan as an example of what he described as a sovereign foreign policy, recalling remarks made by President Ilham Aliyev during talks in Yerevan, where he sharply criticised resolutions adopted against his country by the European Parliament.
Russia is holding a significantly scaled-back Victory Day parade in Moscow on 9 May 2026, reflecting heightened security concerns and the ongoing war in Ukraine, now in its fourth year.
Centre-right leader Péter Magyar was sworn in as Hungary’s prime minister on Saturday, propelled into office on promises of change after years of economic stagnation and strained ties with key allies under his predecessor Viktor Orbán.
Efforts to end the U.S.-Iran war appeared to stall as the two sides exchanged fire in and around the Strait of Hormuz. A reported CIA assessment suggested Tehran could withstand a U.S. naval blockade for months despite mounting sanctions and renewed Gulf attacks.
British paratroopers and military medics have been deployed to Tristan da Cunha after a suspected hantavirus case was confirmed, as first evacuation flights carrying passengers from the stricken MV Hondius cruise ship left Tenerife for Madrid and Paris.
Russia is holding a significantly scaled-back Victory Day parade in Moscow on 9 May 2026, reflecting heightened security concerns and the ongoing war in Ukraine, now in its fourth year.
Indonesian rescue teams have located two Singaporeans who went missing after Mount Dukono erupted on Friday (8 May) on the island of Halmahera, though authorities say it remains unclear whether they are alive.
The U.S. Defense Department has released dozens of previously classified files on unidentified anomalous phenomena (UAP) on Friday (8 May), following an order from President Donald Trump. U.S. officials described as a push for “unprecedented transparency”.
President Donald Trump called Iran’s response to a US war proposal “totally unacceptable” after Tehran sent its reply through mediator Pakistan, according to IRNA. Qatar’s al-Thani also warned Iran against using the Strait of Hormuz as “a pressure tool”.
Efforts to end the U.S.-Iran war appeared to stall as the two sides exchanged fire in and around the Strait of Hormuz. A reported CIA assessment suggested Tehran could withstand a U.S. naval blockade for months despite mounting sanctions and renewed Gulf attacks.
The U.S. and Iran exchanged fire in and around the Strait of Hormuz, though both sides signalled they did not want escalation. The clashes come as Washington awaits Tehran’s response to a proposed deal to end the war while leaving key disputes, such as Iran’s nuclear programme, unresolved for now.
Tensions between the U.S. and Iran remain far from a genuine ceasefire, as military posturing, sanctions and uncertainty over diplomacy continue to fuel fears of a broader regional confrontation.
Iran confirmed on Friday its Armed Forces responded to, what Tehran is calling, the U.S. Navy’s violation of the ceasefire. It said Iranian ships and civilian areas were attacked near the Strait of Hormuz on Thursday evening.
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