Oil prices climbed on Tuesday as U.S. President Donald Trump indicated that the ceasefire with Iran is on life support, following the rejection of Tehran's counterproposal to end the war.
This development has raised concerns about the potential for renewed hostilities, which could disrupt critical shipping routes and energy infrastructure.
Brent crude and WTI both saw upward movement, with traders factoring in the risk of prolonged geopolitical instability.
The lack of progress in negotiations has amplified fears of supply shocks, particularly in a market already sensitive to regional tensions.
The situation remains tense, with no immediate resolution in sight.
Analysts are closely monitoring diplomatic signals and military posturing for any sign of de-escalation or further escalation.