Oil prices climbed Tuesday as stalled diplomacy increased fears about prolonged conflict and supply disruptions. Brent crude futures rose 27 cents, or 0.3%, reaching $91.14 by 0003 GMT. West Texas Intermediate gained 42 cents to $85.04. Both benchmarks had advanced sharply amid growing concerns about energy supplies.
Iran warned it will adopt an offensive military posture after negotiations with Washington stalled. Meanwhile, the United States ruled out extending a ceasefire agreement. These developments reduced hopes for a settlement and increased uncertainty across global energy markets.
Hormuz Traffic Remains Severely Restricted
Progress toward reopening the Strait of Hormuz has stalled, keeping concerns about tanker movements elevated. Consequently, traders continue watching shipping activity closely as regional tensions threaten energy supplies.
Only five commodity vessels crossed the strait Saturday, according to Kpler tracking data. No vessels reportedly crossed Sunday. The previous weekend recorded 31 crossings, highlighting the sharp decline in traffic.
KCM chief market analyst Tim Waterer said shipping numbers remained extremely low. He warned that Hormuz and Bab el-Mandeb risks remain central to the current supply concerns.
Regional Attacks Add Further Supply Risks
Meanwhile, Yemen’s Houthis reported attacking a Saudi military ship and four escort vessels. The group said it used missiles during the attack, adding another risk to regional shipping routes.
Iran has separately negotiated with Oman over managing Strait of Hormuz traffic. Tehran says both sides are approaching an agreement. However, US President Donald Trump reportedly threatened military action against Oman.
Despite rising tensions, media reports indicated Trump opened back-channel discussions with Iran’s Revolutionary Guard. These reports offered limited hope for renewed diplomatic efforts.
Additionally, US crude inventories were expected to decline last week. Product inventories were also forecast to fall, potentially providing some support to oil prices.
Investors now await developments involving diplomacy, shipping routes, and regional attacks. Any prolonged disruption could intensify pressure on global energy supplies.
