Oil prices rose on Tuesday, with Brent crude reaching $91.14 a barrel as stalled US-Iran diplomacy and limited shipping through the Strait of Hormuz heightened supply concerns.
Brent crude futures gained 27 cents, or 0.3%, to $91.14 by 0003 GMT on August 18. US West Texas Intermediate crude rose 42 cents to $85.04 a barrel, according to Reuters market data.
Brent had reached its highest level since July 30 on Monday. WTI also climbed as much as 1% earlier in Tuesday’s session to $85.37, its highest since July 31.
The market move followed comments from a senior Iranian official who told Reuters that Iran would adopt a “fully offensive” military posture after efforts to negotiate a permanent end to the war with the United States stalled. Washington also ruled out extending the temporary ceasefire agreement.
KCM chief market analyst Tim Waterer said US-Iran relations appeared increasingly unstable while an agreement to reopen the Strait of Hormuz remained out of reach.
Shipping through the strategic waterway also stayed sharply restricted. Kpler ship-tracking data showed that only five commodity vessels crossed the Strait of Hormuz on Saturday, compared with 31 the previous weekend. No commodity vessel transit was registered for Sunday.
Supply risks also extended to the Red Sea. Yemen’s Houthis said they attacked a Saudi military ship and four escort vessels with missiles, according to military spokesperson Yahya Saree.
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Iran has separately held talks with Oman over management of the Strait of Hormuz. Meanwhile, media reports said US President Donald Trump had opened back-channel discussions with Iran’s Islamic Revolutionary Guard Corps.
A preliminary Reuters poll released Monday also showed US crude oil and refined-product inventories were expected to have fallen in the previous week.
