Texas oil rises 1.7% to $93.76, awaiting Iran news

The price of West Texas Intermediate (WTI) crude oil saw a notable increase on Tuesday, climbing 1.7% to settle at $93.76 per barrel. This rise occurred as global markets closely monitor developments concerning Iran's response to the latest proposal from the United States aimed at resolving the ongoing conflict.

Contracts for July delivery of WTI futures gained $1.60 by the end of the trading session. This upward movement followed a substantial rally of over 7% on Monday. The previous day's surge was reportedly triggered by Iranian media suggesting that Tehran had halted negotiations with Washington due to the intensified Israeli offensive in Lebanon over the weekend.

However, conflicting signals emerged. U.S. President Donald Trump asserted that negotiations are still active, and Secretary of State Marco Rubio indicated that Iran has, for the first time, agreed to "negotiate aspects of its nuclear program." Analysts from Ritterbusch and Associates commented in a note cited by CNBC, "There are still moving parts in this drama, but at the end of the day, a significant opening of the Strait of Hormuz does not seem much closer than a couple of months ago."

Adding to the complex geopolitical landscape, Trump had announced an agreement for Israel and Hezbollah to cease attacks. Yet, reports emerged of renewed crossfire between the two sides early Tuesday morning. According to the Mehr agency, citing an informed source, Iran has not yet responded to the latest U.S. peace proposal, having previously conditioned any agreement with the U.S. on a cessation of attacks in Lebanon.

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There are still moving parts in this drama, but at the end of the day, a significant opening of the Strait of Hormuz does not seem much closer than a couple of months ago.