Oil prices surged significantly on Tuesday, fully recovering the losses triggered by earlier ceasefire news. Reports indicate that the Trump administration will publicly reject a peace plan proposed by Iran. Concurrently, the United Arab Emirates announced it will withdraw from the OPEC oil alliance in May, dealing a major blow to the petroleum organization.
According to Bloomberg data, the international benchmark Brent crude futures rose approximately 3.1%, breaking through $111 per barrel and returning to levels above $110 seen on April 7, just before Trump announced the initial two-week ceasefire between the U.S. and Iran.
The U.S. domestic benchmark West Texas Intermediate (WTI) crude futures climbed 3.6%, briefly surpassing the $100 mark during the session and closing near $100 per barrel, though still below pre-ceasefire agreement levels.
Reports stated that Iran proposed a peace initiative including opening the Strait of Hormuz, ending regional conflicts, and postponing nuclear negotiations, which Trump plans to formally reject.
The issue of Iran's nuclear enrichment capability has remained a red line for the Trump administration, serving as the core justification for the U.S.-Israel joint military strike against Iran in late February.
Trump posted on Truth Social Tuesday morning that Iran had informed the White House its regime was in a "state of crisis" and sought urgent removal of the U.S. maritime blockade on the Strait of Hormuz.
This marked Trump's first substantive public statement on Middle East hostilities since the White House canceled Vice President Vance's lead negotiation trip to Pakistan over the weekend.
The UAE's state news agency officially announced Tuesday that the Emirates will formally withdraw from OPEC in May, further shaking Middle Eastern and global energy markets.
The UAE accounts for approximately 12% of OPEC's total oil production, and its exit will significantly weaken the alliance's influence.
The UAE news agency stated the decision was based on national core interests and energy structure transformation plans, aligning with the country's long-term strategy and economic development vision to more efficiently address urgent global energy market demands.
UAE officials explained to Bloomberg that following the Iran war and Strait of Hormuz crisis resolution, global energy patterns will be reshaped, requiring the UAE to break free from OPEC production quotas and alliance constraints to gain independent oil production and pricing decision-making autonomy for flexible responses to future supply-demand changes.
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