Oil rises, Brent crude nears $110

Oil drilling rigs

Oil prices rose in early session today, April 6, after US President Donald Trump issued a new warning to Iran asking it to reopen the Strait of Hormuz, despite a report indicating efforts to achieve a ceasefire in the Middle East.

The US, Iran, and regional mediators are discussing the terms of a possible 45-day truce that could end the war, Axios reported, citing informed sources. The website, however, indicated that the chances of reaching a partial agreement within the next 48 hours are slim.

This came after Trump on Sunday warned in a social media post that Iran would live in hell if it did not open the Strait of Hormuz, threatening to bomb Iranian power plants and bridges.

Brent crude was trading up 0.83% at $109.94 a barrel, at 08:55 am Makkah time. West Texas Intermediate (WTI) rose 0.24% to $111.79 a barrel.

Meanwhile, eight members of the OPEC+ alliance agreed on Sunday to increase production by 206,000 barrels per day during May, but it is unclear how the oil will reach the global market given the continued disruption of shipping traffic in the Strait of Hormuz.