Oil prices rose Tuesday amid concerns over a prolonged Middle East conflict after President Trump's comments that the ceasefire with Iran is on "life support"

Oil pushed higher as US President Donald Trump cast doubt over the ceasefire with Iran after rejecting Tehran’s latest peace offer, prolonging the effective closure of the vital Strait of Hormuz. Brent crude traded near $105 a barrel after rising 2.

The extension was announced just hours before it was set to expire. The president did not provide details on how long the new ceasefire extension will last.

Trump's announcement came after an expected trip by Vice President JD Vance to Pakistan for a peace talks with Iranian officials was put on hold.

The United States and Iran have signalled they will hold a new round of ceasefire talks in Pakistan, two regional officials said Tuesday, as leaders on both sides warned they were prepared for more fighting if a fragile two-week truce expires without a deal.

The Iran war’s shaky ceasefire was further strained on Friday as the United Arab Emirates responded to a missile and drone strikes, hours after the U.S. said it thwarted attacks on three Navy ships in the Strait of Hormuz and retaliated against Iranian military facilities. There were no immediate reports of damage in the UAE.

The violence jeopardised the fragile truce between Iran and the US while the two sides considered a deal to end the fighting

As President Trump again voices optimism that Iran will "make a deal" to end the war, Tehran declares itself the regulator of Strait of Hormuz shipping.