Oil Prices Increase Amid Iran Strait of Hormuz Deadline
Global oil prices rose on Tuesday afternoon in Asia as the deadline set by US President Donald Trump for Iran to open the critical Strait of Hormuz shipping route approached.
The price of the global benchmark Brent crude increased by approximately 1.4% to $111.33 (£84.13) per barrel, while US-traded oil surged 2.8% to $115.61.
On Monday, President Trump warned that he might take decisive military action against Iran if the country failed to reach an agreement with the US by 20:00 Washington DC time on Tuesday (00:00 GMT Wednesday).
Oil and gas shipments from the Middle East have experienced significant disruptions due to Tehran's threats to attack vessels attempting to transit the strait, in retaliation for US and Israeli airstrikes since 28 February.
Speaking at the White House, Trump expressed his belief that "reasonable" leaders in Iran were negotiating in "good faith," but he acknowledged that the outcome remained uncertain.
"I believe reasonable people in Iran are negotiating in good faith," Trump said, "but the outcome is still uncertain."
Iran has rejected proposals for a temporary ceasefire, insisting instead on a permanent end to the conflict and the lifting of sanctions imposed on the country.
The disruption to shipping in the Strait of Hormuz has contributed to rising energy prices worldwide and heightened concerns about increased inflation globally.
Approximately one-fifth of the world's oil and gas shipments typically pass through this narrow waterway.
Major Asian economies, including Japan and South Korea, have been particularly affected by these disruptions due to their heavy reliance on energy supplies from the Middle East.
