Global oil prices climbed for a second consecutive session on Tuesday, as physical tightening of the market intensified following President Trump's dismissal of a potential Middle East peace deal.
The Brent futures contract gained about 2% to $106.32 per barrel. Murban futures closed at $103.60 on May 11 and was not trading as of the time of publishing this oil price update.
"US President rejected Iran's demands for a total end to Washington's naval blockade and war reparations, calling the response unacceptable," Saxo Bank analysts said.
Speaking to reporters at the White House, the US president explicitly rejected Tehran's demands for an end to the US naval blockade and war reparations, stating that the current ceasefire is now on "massive life support."
Adding to the supply-side pressure, the US Treasury's Office of Foreign Assets Control sanctioned a network of 12 individuals and entities accused of facilitating the illicit sale of Iranian oil to China.
Treasury officials alleged that the Islamic Revolutionary Guard Corps used front companies across Oman, Hong Kong, and the UAE to bypass sanctions and fund regional operations.
Traders are now bracing for a wave of data from the three major energy forecasting agencies.
The EIA is set to release its outlook later in the day, with OPEC and the IEA following on Wednesday.
These reports will be critical in assessing the long-term impact of the 10-week conflict on global reserves, which have already seen significant draws as refineries scramble to replace Middle Eastern barrels, analysts noted.