Oil prices rose on Tuesday as tensions in the Middle East increased. The move was driven by new developments in the region that could affect global supply.
Iran said it would adopt a fully offensive military stance because talks with the U.S. have stalled, according to a senior Iranian official. This statement was made on Monday and signals a hardening of Iran’s position.
Washington ruled out extending the temporary ceasefire that was in place after the U.S. and Israel launched attacks on Iran on February 28. The decision was announced by U.S. officials and confirms a lack of progress toward a lasting peace.
As a result, progress towards peace talks and the resumption of oil tanker traffic through the Strait of Hormuz has stalled, threatening to prolong the conflict. The strait is a critical chokepoint for global oil shipments.
Brent crude futures climbed 27 cents, or 0.3%, to $91.14 by 0003 GMT, after hitting a high that was not seen since July 30. The rise reflects market worries about supply disruptions.
U.S. West Texas Intermediate crude futures were up 42 cents to $85.04 a barrel, after earlier gaining more than 1% to $85.37, their highest since July 31. The price increase followed the same news that pushed Brent higher.
Only five commodity vessels crossed the Hormuz strait on Saturday, with none on Sunday, according to ship‑tracking data, compared with 31 vessels the previous weekend. Shipping numbers remain at a trickle.
Yemen’s Houthi fighters also targeted a Saudi military ship and four escort vessels in the Red Sea, as announced by their spokesperson Yahya Saree. The attack adds another layer of tension in the region.
Iran is in talks with Oman to manage the strait, but Trump warned that he could bomb Oman, a long‑time U.S. partner. The threat shows the high stakes involved in the negotiations.
Despite the tension, there were reports that Trump had opened back‑channel discussions with the Islamic Revolutionary Guard Corps. The talks could offer a path to de‑escalation.
A preliminary Reuters poll suggested that U.S. crude oil stockpiles fell last week, along with product inventories. The decline may influence future price movements.