Key Moments
- WTI extends gains for a second day. It trades near $95.80 in Asian hours on Tuesday.
- Tensions in the Middle East are rising. As a result, concerns over the Strait of Hormuz are increasing.
- A Reuters survey shows OPEC output fell in April. It reached its lowest level in over 20 years due to export disruptions.
Crude Extends Rally for Second Straight Day
West Texas Intermediate (WTI) crude futures continue to rise for a second session. Prices hover around $95.80 during Asian trading on Tuesday. Moreover, supply fears are driving the rally.
In addition, tensions in the Middle East are adding pressure to the market. Traders worry about disruption in a key global energy route.
US-Iran Ceasefire Under Pressure
A CNN report on Monday said US President Donald Trump is frustrated with slow diplomatic progress. Therefore, officials now see a higher chance of renewed military action.
From the Oval Office, Trump also criticized the ceasefire with Tehran. He described it as being on “massive life support” after rejecting Iran’s latest proposal. As a result, confidence in the truce has weakened further.
Meanwhile, fears are growing over the Strait of Hormuz. Many analysts see it as a critical route for global oil flows.
Iran Signals Readiness to Respond
Uncertainty increased after comments from Mohammad Bagher Ghalibaf, Speaker of Iran’s Parliament. He told Reuters that Iranian forces are ready to respond to any further attacks.
At the same time, Iran continues to demand strict conditions for a ceasefire. These include an end to the US naval blockade and the removal of sanctions. In addition, Tehran wants to maintain influence over shipping through the Strait of Hormuz.
OPEC Output Falls Sharply as Exports Drop
Supply disruptions are now affecting production data. A Reuters survey shows OPEC output fell in April to its lowest level in over 20 years. Moreover, export flows have weakened sharply.
Because of the near shutdown of the Strait of Hormuz, major exporters have reduced shipments. They struggle to move crude reliably to global buyers.
| Indicator | Detail |
|---|---|
| WTI price level | Near $95.80 during Asian trading on Tuesday |
| Key route impact | Strait of Hormuz under severe disruption |
| OPEC April output | Lowest in over 20 years, per Reuters survey |
| Estimated weekly loss | About 100 million barrels of oil per week |
Saudi Aramco CEO Amin Nasser warned about long-term risks. He said disruptions through the Strait of Hormuz could delay market normalization until 2027. Furthermore, he estimated losses of about 100 million barrels per week. As a result, global energy markets remain highly sensitive and volatile.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
