Crude oil futures traded higher on Tuesday morning after reports said that US President Donald Trump is unhappy with Iran’s proposal to reopen the Strait of Hormuz, which did not address its nuclear programme.
At 10 am on Tuesday, July Brent oil futures were at $102.63, up by 0.92 per cent, and June crude oil futures on WTI (West Texas Intermediate) were at $97.42, up by 1.09 per cent. May crude oil futures were trading at ₹9217 on Multi Commodity Exchange (MCX) during the initial hour of trading on Tuesday against the previous close of ₹9106, up by 1.22 per cent, and June futures were trading at ₹8820 against the previous close of ₹8715, up by 1.20 per cent.
A Reuters report, which quoted an unnamed US official, said Trump is unhappy with an Iranian proposal because it did not address Iran’s nuclear programme. “He (Trump) doesn’t love the proposal,” the US official said.
The report said that Trump discussed the proposal with his top national security aides earlier in the day.
A report in Axios, which had quoted an unnamed US official and two sources with knowledge, had mentioned on Monday that Iran’s proposal had sought the extension of the ceasefire for a long period or till the parties agree on a permanent end to the war. It had also proposed to start nuclear negotiations at a later stage, after the strait was open and the blockade lifted.
Meanwhile, US Treasury Secretary Scott Bessent said that doing business with sanctioned Iranian airlines risks exposure to US sanctions.
In a post on X, he said: “Foreign governments should take all actions necessary to ensure that companies in their jurisdictions do not provide services to those aircraft, including the provision of jet fuel, catering, landing fees or maintenance.”
He said the US Treasury Department will impose maximum pressure on Iran under ‘Economic Fury’, and will not hesitate to act against any third parties that facilitate or conduct business with Iranian entities.
In another post, he said: “While the surviving IRGC Leaders are trapped like drowning rats in a sewage pipe, Iran’s creaking oil industry is starting to shut in production thanks to the US BLOCKADE. Pumping will soon collapse. GASOLINE SHORTAGES IN IRAN NEXT!”
May nickel futures were trading at ₹1837.70 on MCX during the initial hour of trading on Tuesday against the previous close of ₹1809.80, up by 1.54 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), May dhaniya contracts were trading at ₹13090 in the initial hour of trading on Tuesday against the previous close of ₹13046, up by 0.34 per cent.
May turmeric (farmer polished) futures were trading at ₹16,000 on NCDEX in the initial hour of trading on Tuesday against the previous close of ₹16,100, down by 0.62 per cent.