Oil prices moved higher on Tuesday as negotiations between the United States and Iran over the Strait of Hormuz remained stalled, increasing concerns about prolonged disruptions to global energy supplies.
By 09:22 ET (13:22 GMT), benchmark Brent crude futures were up 0.4% at $91.22 per barrel. U.S. West Texas Intermediate crude futures gained 1.0% to $85.37 per barrel.
U.S.-Iran Tensions Support Oil Prices
Market sentiment remained supported by renewed geopolitical uncertainty surrounding the U.S.-Iran conflict.
ING analysts said President Donald Trump’s decision not to extend the U.S.-Iran peace agreement, combined with continued security risks in the Strait of Hormuz, had increased fears of further supply disruptions.
Oil prices had already advanced on Monday after Trump said Washington would not pursue an extension of the ceasefire agreement with Iran.
The deal was signed in mid-June and expired on Monday.
Washington and Tehran Disagree Over Strait of Hormuz
Trump has said that the United States maintains full control of the Strait of Hormuz and has also claimed that talks with Iran remain underway.
Iranian officials have disputed those statements.
The conflicting accounts have added to uncertainty surrounding the future of the strategic waterway and the possibility of a broader diplomatic agreement.
The U.S. president has also threatened military action against Oman if the country interferes with Washington’s negotiations with Iran.
Oman Talks Offer Hope for Shipping Routes
Iran and Oman have previously said they were holding discussions aimed at reopening shipping routes through the Strait of Hormuz.
A successful agreement could help restore oil flows and reduce pressure on global energy markets.
However, neither Iran nor Oman has announced a final agreement, leaving traders uncertain about when commercial shipping could return to normal levels.
Strait of Hormuz Traffic Remains Severely Restricted
Commercial traffic through the Strait of Hormuz continues to operate at only a fraction of its pre-conflict levels.
Shipping companies remain cautious because of the risk of Iranian attacks, discouraging many tankers from attempting to cross the waterway.
The United Kingdom Maritime Trade Operations agency reported on Tuesday that a vessel traveling out of the Strait of Hormuz was hit by an unidentified projectile.
The incident reportedly caused damage to the ship’s engine room and resulted in a crew casualty.
Strait of Hormuz Remains Critical for Global Oil Supply
The Strait of Hormuz is one of the world’s most important energy shipping routes.
Before the conflict began in February, roughly 20% of global oil flows passed through the narrow waterway.
Any extended disruption could therefore tighten global crude supplies and maintain upward pressure on oil prices.
For now, crude markets remain highly sensitive to developments involving the United States, Iran and Oman. A diplomatic breakthrough could ease supply concerns, while further military escalation or shipping disruptions could push oil prices higher.
