Oil prices climb as Trump says Iran ceasefire on 'life support'
Brent and WTI crude rebounded Tuesday after President Donald Trump rejected Tehran's latest proposal and said the Iran ceasefire is on 'life support'. Traders began pricing in fresh risk of a Strait of Hormuz disruption that could squeeze global supply.
Brent crude pushed higher again in Asian trading Tuesday with WTI tracking the move, after President Trump told reporters late Monday that the Iran ceasefire was on 'life support'. The White House said Tehran's latest proposals were 'unreasonable' and rejected them.
Traders are again pricing in the possibility that the more than 20 million barrels of oil moving daily through the Strait of Hormuz could face disruption. Morgan Stanley warned last week that a temporary closure could send Brent toward $150 over the summer. JPMorgan expects oil to stay above $100 a barrel through year-end.
Elevated energy prices add pressure ahead of Tuesday's US April CPI release. Economists polled by Dow Jones expect headline inflation near a three-year high of 3.7%. Investors are reweighting odds for a Federal Reserve rate cut at the September meeting as cost-of-living readings stay sticky.
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