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EMEA Oil Update: Crude Oil Advances as Traders Await US Response to Iran Proposal

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-- EMEA crude futures edged higher in after-hours trading on Tuesday, as markets await the US response to Iran's latest proposal, amid the double blockade of the Strait of Hormuz that is keeping supply concerns elevated.

Brent crude futures rose by 2.61% to $110.98 per barrel, while Murban oil futures jumped 2.91% to $107.22/bbl.

On Tuesday, President Trump said in a social media post that Iran wants the US to lift its naval blockade of the crucial shipping route and reopen it "as soon as possible."

"Iran has just informed us that they are in a 'state of collapse'. They want us to 'open the Hormuz Strait' as soon as possible, as they try to figure out their leadership situation," Trump said in a post on Truth Social.

Trump reportedly told his advisors that he is not satisfied with Iran's proposal to open the Strait and end the Middle East conflict, which has roiled the global energy market. However, it was not yet clear why exactly the US President did not like Iran's offer.

Iran has reportedly signaled it may be willing to accept an interim deal to reopen the Hormuz in exchange for an end to the blockade. However, more complex negotiations over Tehran's nuclear program would have to wait.

Meanwhile, commercial vessel traffic through the Hormuz, which handles about 20% of the world's oil and gas supplies, remains tightly constrained.

The latest data from Kpler show that only six vessel crossings were recorded, up two day-on-day, all moving west to east and evenly split between commercial and non-commercial activity.

The shipping data firm said access to the strategic waterway remains uncertain as Iran advances a new negotiation proposal, with the modest uptick in daily crossings indicating caution rather than a meaningful recovery in traffic.

Japanese crude very large crude carrier Idemitsu Maru completed a transit via the Hormuz carrying 2 million barrels of crude, which was loaded from Saudi Arabia's Juaymah terminal in early March, according to Marine Traffic.

On the supply front, Iran is reportedly running out of storage capacity for its crude, raising the prospect that it may be forced to cut output further. US Treasury Secretary Scott Bessent said in a social media post on Monday that the Iranian oil industry was "starting to shut in production" due to the Hormuz blockade.

Trimming the gains, the UAE said that it was leaving OPEC and the broader OPEC+ alliance, delivering a significant blow to the cartel that coordinates crude production among many of the world's largest producers.

Jorge Leon, head of geopolitical analysis at Rystad Energy, said that the UAE's departure strips the producer group of one of its core mechanisms of influence, spare capacity that can be deployed to offset disruptions or withdrawn to support prices.

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