International oil prices spiked by around 2.6% on Tuesday.
This marks the fourth consecutive trading day of increases since May 8.
The surge in oil prices was triggered by U.S. President Donald Trump’s “ultimatum” to Iran during his first stop in Saudi Arabia on his Middle East tour. While proposing cooperation, Trump insisted on an immediate conclusion to nuclear negotiations.
Despite Trump’s emphasis on negotiation and normalizing relations, the pressure he added amid unresolved U.S.-Iran nuclear talks that had been ongoing for a month further drove up oil prices.
Trump threatened to completely ban Iranian oil exports if Iran refused to engage in negotiations.
Brent crude, the international oil benchmark, closed at 66.63 per barrel USD for July delivery, up 1.67 USD (2.57%) from the previous session. This marks the highest closing price since April 25.
West Texas Intermediate (WTI), the U.S. oil benchmark, rose 1.72 USD (2.78%) to 63.67 USD per barrel for June delivery, reaching its highest closing price since April 22.
