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EMEA Oil Update: Oil Gains as Strait of Hormuz Supply Fears Mount

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Crude oil futures climbed on Tuesday, after US President Donald Trump rejected Iran's latest peace proposal, calling it "unacceptable" and declaring the regional ceasefire very fragile.

The Brent futures contract gained over 3.3% to $107.62 per barrel. Murban futures gained about 1.9% to $105.54 per barrel.

"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, Trump 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 waiting for data from the EIA, which is set to release its outlook later in the day while OPEC and the IEA will publish updated indicators 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.

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