Oil prices rallied for a third straight session on Tuesday as fading prospects for a Middle East peace deal fueled supply concerns.
Brent crude settled at $107.77 a barrel, up 3.4%, while US West Texas Intermediate rose 4.2% to $102.18.
President Trump said ceasefire talks with Iran are on "life support," citing disagreements over Tehran's demands for a halt to hostilities, removal of a US naval blockade, resumption of Iranian oil sales, and compensation for war damages. Iran maintains its sovereignty over the Strait of Hormuz, a crucial chokepoint for global oil and LNG flows.
The US Energy Information Administration now expects the strait to remain effectively closed through late May, leading to much larger supply losses than previously forecast. The EIA estimates 10.5 million barrels per day were lost across the Middle East in April.
Saudi Aramco's CEO warned disruptions could delay market stability until 2027, with weekly losses of about 100 million barrels. Global inventories are projected to fall by 2.6 million barrels per day this year.