Oil prices extend gains as Trump comments diminish hopes for a U.S.

Oil prices extended gains on Tuesday as President Trump's comments that the ceasefire with Iran is on "life support" diminished hopes for a de-escalation in the Middle East conflict. The remarks raised concerns about potential supply disruptions from the region, which accounts for a significant portion of global oil production. Brent crude futures rose above $75 per barrel, while West Texas Intermediate (WTI) climbed to around $71. The market had previously priced in a fragile truce, but Trump's statement suggests renewed geopolitical risk. Analysts noted that any further escalation could threaten key chokepoints like the Strait of Hormuz. The development comes amid already tight global oil inventories and OPEC+ production cuts.

Global Impact

Economically, higher oil prices could stoke inflation and pressure central banks to maintain tighter policy, particularly in import-dependent economies like India and Japan. Geopolitically, the risk of a broader Iran-Israel conflict rises, potentially drawing in the U.S. and Gulf states.