Global oil prices top $111 a barrel after reports that Trump is unhappy with Iran's proposal to end war

By Isabel Wang and Nora Redmond

Iran is rapidly running out of space to store its oil

President Donald Trump reportedly signaled he was unlikely to accept Iran's offer.

The rally in oil prices was picking up steam on Tuesday, with the front-month Brent crude surpassing $111 a barrel after reports that President Donald Trump is unhappy with Iran's offer to end the war.

West Texas Intermediate, the U.S. benchmark, saw its June contract (CL.1) (CLM26) rise 4.7% to $100.90 a barrel, while the front-month Brent contract for June delivery (BRN00) (BRNM26), which expires at the end of this month, was climbing 3.3% to $111.81 a barrel.

The most-active Brent futures for July delivery (BRNN26) were up 3.2%, at around $105.24 a barrel, according to FactSet data.

The advance came as investors' hopes dimmed that the U.S.-Iran conflict would soon end - allowing the Strait of Hormuz to reopen.

CNN reported early Tuesday that Trump signaled to national-security officials during a meeting on Monday that he was unlikely to accept Tehran's proposal, which includes letting ships transit through the route again without a blockade from the U.S. on Iranian ports in return for the postponement of discussions on its nuclear concessions.

"Oil is higher once more and has broken the $110 per barrel barrier as the Strait of Hormuz remains closed and the impasse between the U.S. and Iran has yet to be broken," said Kathleen Brooks, research director at XTB.

"The market is not optimistic about the chance of a deal to reopen the Strait due to Iran's request to push discussions about nuclear disarmament into the future," she told MarketWatch in emailed commentary on Tuesday.

Market concerns linger that Iran's crude storage could be approaching capacity in a few weeks, potentially forcing output cuts from one of the world's largest oil producers.

"Iran is running out of places to park its crude, and that is where the story turns. This is no longer about exports being blocked; it is about the system backing up into itself," said Stephen Innes, managing partner at SPI Asset Management. "Once storage tanks top out, the only valve left is the wellhead. That is when barrels get shut in, not by choice, but by physics."

The potential pause in oil production could damage reservoirs, altering pressure dynamics and reducing future output capacity. "What starts as a logistical bottleneck can quickly become a permanent supply loss," Innes said.

-Isabel Wang -Nora Redmond

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04-28-26 0833ET