BY COMFORT OGBONNA
Global oil prices climbed sharply in Asian trading on Tuesday after fresh U.S. military strikes in Iran heightened concerns over the escalating Middle East conflict and the ongoing disruption to shipping through the Strait of Hormuz, one of the world’s most critical energy corridors.
Brent crude futures surged by more than 2%, gaining $1.98 to trade at $98.12 per barrel by early morning trading. The rise came after the benchmark had suffered a steep 7% decline in the previous session amid optimism that diplomatic efforts could eventually ease tensions in the region.
Meanwhile, U.S. West Texas Intermediate crude traded at $91.79 a barrel. Although slightly higher during Tuesday’s session, the contract remained significantly below Friday’s closing level, reflecting continued volatility in global energy markets. Trading activity in the United States had been subdued on Monday because of the Memorial Day holiday, leaving investors closely watching developments in the Middle East for fresh direction.
Market sentiment shifted rapidly after reports emerged that U.S. forces carried out strikes in southern Iran while Israel intensified attacks against Hezbollah-linked positions. The renewed military activity weakened hopes that negotiations between Washington and Tehran would soon lead to a ceasefire or broader agreement capable of stabilizing the region.
Analysts said the attacks reignited fears that the conflict could drag on longer than expected, placing further pressure on global oil supplies. Michael McCarthy, chief executive of trading platform Moomoo Australia, noted that the military escalation had widened the price gap between Brent crude and U.S. oil benchmarks as traders reacted to growing supply risks centered around the Persian Gulf.
U.S. Secretary of State Marco Rubio also dampened expectations for a quick breakthrough after stating that negotiations with Iran could still take several days. His comments reduced optimism that an immediate agreement was within reach, despite reports suggesting both sides had made progress toward a temporary framework aimed at ending the conflict.
Since the outbreak of the war three months ago, Iran has effectively blocked most non-Iranian shipping traffic through the Strait of Hormuz. The strategic waterway handles roughly one-fifth of global oil and liquefied natural gas shipments, making any disruption there a major threat to world energy markets and global economic stability.
The latest diplomatic discussions were taking place in Doha, where Iran’s senior negotiator and foreign minister met with Qatar’s prime minister to discuss possible terms for a peace arrangement with the United States. According to officials from both countries, negotiators have moved closer to a memorandum of understanding that could pause hostilities and allow 60 days for talks on a permanent settlement.
Reports from Japan’s Nikkei newspaper, citing a Middle Eastern diplomatic source, suggested that Iran may agree to remove naval mines from the Strait of Hormuz within 30 days if a deal is finalized. The proposed arrangement would reopen the passage to international vessels and restore safe navigation routes for global energy shipments. Tehran could also suspend the transit fees it reportedly imposed during the conflict.
The possibility of reopening the strait has fueled speculation among traders that oil tankers stranded in the region for months may soon resume operations. Tim Waterer, chief market analyst at KCM Trade, said investors are increasingly betting on a breakthrough that would release long-delayed shipments and ease pressure on global supply chains.
Recent ship-tracking data showed signs of limited movement returning to the region. Three liquefied natural gas carriers reportedly passed through the strait in recent days, heading toward Pakistan, China and India. A supertanker transporting Iraqi crude to China also managed to leave the area after being delayed for nearly three months because of security concerns.
Despite the renewed diplomatic activity, uncertainty remains high. U.S. President Donald Trump on Monday again demanded that Iran surrender its enriched uranium stockpile for destruction, a condition Tehran has long resisted. Analysts warned that disagreements over nuclear issues could still derail negotiations even if progress continues on broader ceasefire terms.
Tony Sycamore, a market analyst at IG, said the latest developments served as a reminder that the proposed agreement could still collapse unexpectedly, just as several earlier negotiation attempts had failed in recent months.
With tensions still elevated and the future of the Strait of Hormuz uncertain, investors are expected to remain highly sensitive to every military and diplomatic development emerging from the region.
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