Oil prices rose for a third straight session after US President Donald Trump renewed pressure on Iran to accept a deal that could bring an end to weeks of conflict and restore traffic through the Strait of Hormuz. Brent crude advanced above $110 a barrel after gaining nearly 8% last week, while West Texas Intermediate approached $107.
The latest move adds to an extraordinary rally that has seen oil prices surge more than 50% since the US and Israel launched strikes on Iran at the end of February.
In a social media post on Sunday, Trump sharpened his tone. “For Iran, the Clock is Ticking, and they better get moving, FAST, or there won't be anything left of them. TIME IS OF THE ESSENCE!”
The continued disruption to the Strait of Hormuz remains the central driver of the oil rally. The narrow waterway, through which a significant share of the world's crude exports normally passes, has seen sharply reduced traffic, constraining supplies from Persian Gulf producers and forcing buyers to seek alternative sources.
Morgan Stanley said last week that the market is now in “a race against time.” The brokerage noted that factors that initially cushioned the impact of the conflict could begin to break down if the strait remains effectively closed into June. Additional supply pressure emerged after the Trump administration allowed a waiver permitting Russian crude sales to lapse, despite India's request for an extension.
The geopolitical backdrop remains tense despite a formal ceasefire announced in early April. Over the weekend, drone strikes triggered a fire at a nuclear facility in the United Arab Emirates, underscoring how quickly hostilities could intensify. Iranian media suggested negotiations with Washington remain deadlocked. The semi-official Mehr news agency said the US had offered “no tangible concessions” while continuing to demand terms it failed to secure during the conflict.
Trump met with senior officials including JD Vance, Marco Rubio and John Ratcliffe over the weekend and is expected to convene his national security team again this week.
“We want to make a deal,” Trump told Axios. “They are not where we want them to be. They will have to get there or they will be hit badly.”
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