Oil prices continued to rise on Tuesday, as attempts to resolve the U.S.-Iran conflict seem to have reached an impasse. The vital Strait of Hormuz remains largely closed, preventing energy supplies from the significant Middle Eastern production area from reaching global markets. The latest Iranian proposal intended to conclude the conflict has not garnered the approval of U.S. President Donald Trump, according to a statement from a U.S. official on Monday. On Monday, Iranian sources revealed that Tehran’s proposal refrained from tackling its nuclear program until hostilities are resolved and disputes concerning Gulf shipping are addressed.

The impasse in the conflict is underscored by Trump’s dissatisfaction with the Iranian proposal, resulting in Iran halting shipping activities through the Strait of Hormuz. This strategic waterway is responsible for approximately 20% of global oil and gas consumption, while the U.S. maintains its blockade of Iranian ports. Brent crude futures for June increased by 45 cents, representing a 0.4% rise, reaching $108.68 a barrel as of 0051, following a 2.8% gain in the prior session, marking its highest close since April 7. The contract has reached its seventh day of duration.

U.S. West Texas Intermediate crude for June increased by 58 cents, or 0.6%, reaching $96.96, following a 2.1% rise in the prior session. An earlier round of negotiations between the U.S. and Iran collapsed last week after face-to-face talks did not yield successful outcomes. According to Fawad Razaqzada, a market analyst, the current focus for oil traders has shifted from rhetoric to the tangible physical flow of crude oil through the Strait of Hormuz, which is presently constrained. Razaqzada noted that even with a resolution, production outages and logistical challenges suggest that recovery may extend over several months.

Ship-tracking data indicated notable disruptions in the region, as six Iranian oil tankers were compelled to reverse course owing to the U.S. blockade. Nonetheless, a liquefied natural gas tanker operated by the Abu Dhabi National Oil Co of the United Arab Emirates successfully navigated the Strait of Hormuz and is reportedly in proximity to India, according to ship-tracking data released on Monday. Before the onset of the U.S.-Israeli conflict with Iran, which commenced on February 28, the daily transit of vessels through the strait ranged from 125 to 140.