FX.co ★ Oil Rises for 7th Session

WTI crude oil futures jumped more than 3% to approach $100 per barrel on Tuesday, extending their rally to a seventh consecutive session and reaching the highest level since early April. Traders remain focused on US President Donald Trump’s pending response to Iran’s latest proposal to end the conflict and reopen the Strait of Hormuz, although reports indicate Washington is dissatisfied, with Tehran’s nuclear programme still a central point of contention.

Although a ceasefire has largely held since early April, reciprocal restrictions imposed by Iran and the US have pushed traffic through the Strait of Hormuz close to zero. This has amplified supply concerns, given that the waterway normally handles about 20% of global energy flows. Now in its ninth week, the conflict has driven prices sharply higher and further tightened global supply conditions.

The International Energy Agency has warned of a potentially unprecedented supply shock, alongside mounting risks to global demand. Nonetheless, some of the upward pressure on prices was tempered after the UAE signaled its intention to exit OPEC and gradually increase crude production.