Oil prices extended gains on Tuesday as a U.S.-imposed deadline loomed for Iran to open the Strait of Hormuz or be “taken out”, ‌with U.S. President Donald Trump threatening to order attacks on Iranian bridges and power plants. Brent crude futures rose $1.74, or 1.6%, to $111.51 a barrel by 0530 GMT, while U.S. West Texas Intermediate crude futures were up $3.45, or 3.1%, at $115.86. Trump has threatened to rain “hell” on Tehran if it fails to comply with his deadline of 8 p.m. EDT Tuesday (0000 GMT Wednesday) to reopen the strait, through which about a fifth of global oil supply is normally shipped, if a deal is not reached. Responding to a U.S. proposal through mediator Pakistan, Tehran rejected a ceasefire and said a ⁠permanent end to the war was necessary, and pushed back against pressure to reopen the strait. Iran’s rejection of the U.S. ceasefire proposal has kept tensions elevated and left diplomacy hanging by a thread, said Priyanka Sachdeva, senior market analyst at Phillip Nova.

REUTERS