Oil markets pushed higher on renewed geopolitical tension as the deadline for the U.S.-Iran ceasefire draws closer, with traders reacting to delays in diplomatic talks and fresh warnings from Washington. The lack of progress in negotiations has tightened market sentiment, raising fears of a fresh supply disruption from the Middle East.
As at the time of writing 08:50 PM (WAT), Brent crude rose 5.41% to $100.70 per barrel, while West Texas Intermediate (WTI) crude climbed 4.98% to $91.77 per barrel.
The latest rally follows the continued postponement of U.S.-Iran talks, now shifted again, with former U.S. President Donald Trump signalling reluctance to extend the ceasefire beyond the current deadline. That stance has injected fresh uncertainty into the market, as traders begin to price in the risk of renewed hostilities and tighter crude supply, particularly through the Strait of Hormuz.
Further tightening the outlook, disruptions across global supply chains persist. The United States has already released over 80 million barrels from its Strategic Petroleum Reserve to stabilise domestic supply, while Kuwait has declared force majeure on exports due to operational challenges and security concerns. At the same time, Russia is set to halt part of its pipeline flows to Europe, adding another layer of pressure to already strained supply routes.
With Brent now testing $100 per barrel, the direction of the market in the coming days will largely depend on whether diplomatic efforts can deliver a last-minute breakthrough. Until then, the oil market remains firmly on edge, with prices reacting sharply to every signal coming out of Washington and Tehran.