Oil prices rose around 1% on Tuesday, extending gains from the previous session, as the United States-Iran conflict remained at an impasse and disruptions to shipping through the Strait of Hormuz continued to constrain global energy supplies.
U.S. President Donald Trump is reportedly dissatisfied with Iran’s latest proposal to end the conflict, a U.S. official told Reuters on Monday.
Trump’s stance has left negotiations deadlocked, with Iran continuing to restrict shipping flows through the Strait of Hormuz, while the United States maintains its blockade of Iranian ports.
By 2:50 pm AEST (4:50 am GMT), Brent crude futures for June had risen $1.22, or 1.1%, to US$109.46 per barrel, while West Texas Intermediate (WTI) crude gained $1.06, or 1.1%, to US$97.43 per barrel.
An earlier round of negotiations between Washington and Tehran collapsed last week following unsuccessful face-to-face talks, reinforcing uncertainty around the outlook for supply flows from the region.
Analysts at ING suggested a gradual recovery in oil shipments but cautioned that disruptions could persist for an extended period.
"We are now assuming that oil flows through the Strait of Hormuz will slowly start resuming in May and June, and remain below pre-war levels for most of the year.
"This longer return allows for the gradual resumption of upstream production, which has had to shut-in due to storage constraints. It also allows for potential infrastructure damage, which could further slow the return to pre-war levels.
"Our new base case sees ICE Brent averaging $104/bbl ($96 previously) over 2Q26, while the significant inventory drawdown and slow recovery towards pre-war flows sees Brent averaging $92/bbl ($88/bbl previously) over 4Q26."
Market participants are also turning their attention to upcoming U.S. inventory data for further direction on supply dynamics, with official figures from the U.S. Energy Information Administration due for release on Wednesday (Thursday AEST).
