Brent crude (BZ=F) and West Texas Intermediate (CL=F) futures contracts marched higher on Tuesday morning, having plummeted more than 10% at one point in Monday’s trading session. Questions continue to swirl around the potential reopening of the Strait of Hormuz and an end to the conflict between Iran and the US and Israel.
Brent crude (BZ=F) gained 1.7% after the opening bell in London, to around the $97.50 per barrel mark. West Texas Intermediate (CL=F) also rose 1.7% to $89.55 per barrel.
The moves come amid conflicting reports about talks between Iran and the US to end fighting. On Monday, president Donald Trump delayed strikes on Iranian power plants, having given Iran a deadline to restore trade through the Strait of Hormuz, saying Washington had productive conversations with Tehran.
But Tehran has since denied that it has been in touch with US negotiators, accusing Washington of price manipulation.
On Sunday night, Trump and prime minister Keir Starmer held a 20-minute phone call about the situation.
“They agreed that reopening the Strait of Hormuz was essential to ensure stability in the global energy market,” a Downing Street spokesperson said.
On Saturday, Trump gave Iran a 48-hour deadline to reopen the Strait — a measure set to expire shortly before midnight UK time on Monday.
In a Truth Social post, Trump wrote: “If Iran doesn’t FULLY OPEN, WITHOUT THREAT, the Strait of Hormuz, within 48 hours from this exact point in time, the United States of America will hit and obliterate their various POWER PLANTS, STARTING WITH THE BIGGEST ONE FIRST!”
Yesterday, Iran’s defence council said in a statement that the “only way for non-hostile countries” to pass through Strait of Hormuz is “coordination with Iran”.