Oil prices climbed in early Asian trading after reports that Middle East tensions may keep supply tight. U.S. President Donald Trump tweeted criticism of Iran’s response to a U.S. proposal, calling it “totally unacceptable.” The comment added pressure on markets already nervous about a renewed U.S.–Iran standoff.

Front‑month WTI crude rose 3.1% to $98.37 a barrel, while Brent climbed 3.2% to $104.50. Citi Research’s Anthony Yuen warned that volatility could spike if U.S.–Iran dealmaking stalls. The spikes come as Iran formally delivered a response excluding nuclear commitments, widening doubts over a quick resolution.

The uptick signals that investors are pricing in the risk of further supply interruptions, which could tighten the market and lift prices further. For oil majors, higher costs may squeeze margins, while refiners face tighter inventories. The current dynamics underscore the fragility of the global energy supply chain and its sensitivity to geopolitical shifts.

Market watchers note that the price jump followed a brief pause in U.S. crude inventories, adding to concerns about storage capacity. Analysts expect futures to remain above $95 a barrel until a clear diplomatic resolution emerges. Meanwhile, Asian equity markets split, with energy stocks rallying while broader indices lagged.