Oil Prices Push Toward $100 as Trump Declares Iran Ceasefire on “Life Support”

CNBC reported Tuesday that President Donald Trump publicly dismissed Tehran’s latest ceasefire proposal, describing the pause in hostilities as barely alive and sending Iran ceasefire oil prices sharply higher in early Asian trade.

Brent crude for July delivery climbed 0.9% to $105.12 a barrel. U.S. West Texas Intermediate for June added 1%, rising to $99.05 per barrel.

Trump Dismisses Tehran’s Proposal

Trump told reporters the ceasefire’s condition was “unbelievably weak” and called Iran’s counterproposal to halt the war “garbage.” He compared the situation to a patient with a near-zero survival prognosis. The comments followed Washington’s outright rejection of the terms Tehran submitted to end the conflict.

The blunt language effectively closed off near-term diplomatic optimism. Analysts at Citi flagged in a note that oil prices remain volatile and could climb further if negotiations stay difficult. Re-escalation is a genuine risk, according to Henry Wilkinson, Chief Intelligence Officer at investment firm Dragonfly, who told CNBC’s Squawk Box Asia that Trump may use upcoming U.S.-China talks to press President Xi Jinping to lean on Tehran.

How the Conflict Has Reshaped Energy Markets

The U.S. and Israeli-led military campaign against Iran began on Feb. 28. Since then, both Brent and WTI have surged more than 40%, a move that rivals some of the sharpest oil shocks in recent decades. The Strait of Hormuz, through which roughly a fifth of global oil supply transits, has remained blocked, tightening supply and amplifying price volatility.

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Hormuz Blockade Could Delay Recovery Until 2027

Amin Nasser, chief executive of Saudi Aramco and head of the world’s largest oil producer, warned investors Monday that even an immediate reopening of the strait would take months to fully rebalance global supply chains. If the waterway stays shut past mid-June, he said, market normalisation is unlikely before 2027. The comments came during Aramco’s first-quarter earnings call and underscored how prolonged the supply disruption could become.

Traders now face an uncomfortable calculus. Diplomatic progress looks distant, the Hormuz corridor stays constrained, and the White House’s language is hardening rather than softening.

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