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Oil prices rose for a fourth consecutive day as conflicting statements from the United States and Iran fueled uncertainty over whether the Strait of Hormuz is open to shipping, Reuters reports.
Brent crude futures climbed 69 cents, or 0.8%, to $91.71 a barrel. U.S. West Texas Intermediate (WTI) futures rose 76 cents, or 0.9%, to $85.70 a barrel.
Both benchmarks closed at their highest levels in more than three weeks during Tuesday’s session, driven by worsening prospects for a U.S.-Iran peace deal.
“Shipping risks are rising again as attacks by Iran and the Houthis remain widespread around both key chokepoints, supporting oil prices in the near term,” said Jun Rong, a senior oil market analyst at Sparta Commodities, referring to the Strait of Hormuz and the Bab el-Mandeb Strait.
Ship traffic through the Strait of Hormuz has slowed, with most shipowners avoiding the critical waterway amid a lack of clear signals that normal shipping will resume following the blockade.
Iraq, meanwhile, has approved mechanisms for exporting Iraqi crude through international and local companies and alternative export markets in an effort to bypass the Strait of Hormuz.
Tensions remain over the strait
U.S. President Donald Trump recently reiterated his plan to declare the Strait of Hormuz U.S. territory and commented on the current state of shipping through the waterway.
Iran, meanwhile, has said the strait will not fully reopen until Washington meets all of Tehran’s conditions under the Islamabad memorandum of understanding.
Iran is also preparing for a possible escalation beyond the Strait of Hormuz, with tensions continuing across the wider region.
