Oil prices rose on Tuesday as prospects of a deal to end the Middle East conflict appeared increasingly uncertain, raising concerns about disruptions to global energy supplies.
Brent crude futures gained 27 cents, or 0.3%, to $91.14 a barrel by 0003 GMT, after reaching their highest level since July 30 on Monday.
U.S. West Texas Intermediate crude futures also rose 42 cents to $85.04 a barrel, after earlier gaining more than 1% to $85.37, its highest since July 31.
The latest price gains followed growing tensions between Iran and the United States, with Tehran warning that it could adopt a more offensive military posture after diplomatic efforts to secure a permanent end to the conflict stalled.
Washington has also ruled out extending a temporary ceasefire, further reducing hopes of an immediate breakthrough in negotiations.
The developments have also raised concerns over shipping through the Strait of Hormuz, a key global oil transit route.
“Oil has jumped to start the week as U.S.-Iran relations look increasingly shaky. A deal to reopen the Strait of Hormuz still does not appear to be in sight, and shipping numbers remain at a trickle,” said Tim Waterer, chief market analyst at KCM.
Ship-tracking data from Kpler showed that only five commodity vessels passed through the Strait of Hormuz on Saturday following attacks on tankers, while no vessels were recorded on Sunday. This compares with 31 crossings during the previous weekend.
The Strait of Hormuz and the Bab el-Mandeb remain key concerns for oil markets because disruptions in either route could further constrain global energy supplies.
“The dual chokehold on the Strait of Hormuz and the Bab el-Mandeb remains highly significant. These are not secondary concerns. They sit at the centre of the current supply-risk narrative,” Waterer said.
In a separate development, Yemen’s Houthi group said it had attacked what it described as a Saudi military ship and four escort vessels in the Red Sea with missiles.
Iran is also separately negotiating with Oman over arrangements for managing the Strait of Hormuz and has indicated that the two sides are close to an agreement.
Meanwhile, reports have suggested that U.S. President Donald Trump has opened back-channel discussions with Iran’s Islamic Revolutionary Guard Corps, offering a potential opening for diplomacy.
U.S. crude oil inventories were also expected to have declined last week, alongside product inventories, according to a preliminary Reuters poll.
