FX.co ★ Oil Pulls Back Gains Before Trump Iran Deadline

Brent crude futures slipped toward $109 a barrel on Tuesday, paring earlier gains after briefly touching $111.81, as markets braced for US President Donald Trump’s looming deadline for Iran to reach an agreement on the Strait of Hormuz. Trump has demanded that any deal ensure uninterrupted passage through the strategic waterway, warning that failure to comply by 8 p.m. Eastern Time could prompt US strikes on key Iranian infrastructure. “Every bridge in Iran could be destroyed by midnight tomorrow, and power plants rendered permanently inoperable,” he said.

The escalatory rhetoric comes as the six-week-old conflict continues to unsettle oil markets, driving the largest disruption to global crude supply in decades. Overnight, Iran launched seven ballistic missiles and multiple drones at targets in Saudi Arabia, while the Israel Defense Forces reported two separate missile barrages originating from Iran since midnight.