Oil prices climbed early Tuesday as traders weighed the possibility of extended disruptions through the Strait of Hormuz, which handles one-fifth of global oil shipments. Market sentiment shifted after President Trump dismissed Iran's response to the latest U.S. peace offer, raising concerns about potential supply constraints in the vital waterway.

Trump called Iran's reply "the weakest piece of garbage" and declared the cease-fire between the two nations exists on "massive life support." According to Hola Prime's CEO Somesh Kapuria, this rejection has dampened expectations for quick resolution, reinforcing concerns about prolonged shipping disruptions through one of the world's most critical energy corridors.

Front-month WTI crude gained 0.2% to trade at $98.25 per barrel, while Brent crude rose 0.2% to $104.44. The modest price increases reflect market anxiety about potential supply constraints without immediate signs of diplomatic progress between the U.S. and Iran, with traders closely monitoring developments in the region.