Oil prices rose on Tuesday as hopes for a lasting agreement to end the Middle East conflict weakened, raising concerns about continued disruption to global energy supplies.
Brent crude futures increased 62 cents, or 0.7 percent, to $91.49 a barrel in morning trading after reaching their highest level since July 30 in the previous session. US West Texas Intermediate crude rose 75 cents to $85.25, although it had earlier climbed more than 1 percent to $85.37, its highest level since July 31.
The latest gains came after a senior Iranian official said Tehran would adopt a fully offensive military posture as efforts to secure a permanent end to the conflict stalled. Washington has also ruled out extending the existing temporary ceasefire arrangement.
The developments have raised fresh concerns about the security of the Strait of Hormuz, a critical energy route through which a large share of global oil supplies normally passes.
Progress toward a peace agreement and the restoration of regular tanker traffic through the strait have slowed. Shipping numbers have remained low, with vessels continuing to face security risks.
“Oil has jumped to start the week as US-Iran relations look increasingly shaky,” said Tim Waterer, chief market analyst at KCM.
He said an agreement to reopen the Strait of Hormuz did not appear close and that shipping activity remained at only a small fraction of normal levels.
A projectile struck a vessel travelling through the strait on Tuesday, according to maritime reports, adding to concerns over the safety of commercial shipping. The number of crossings has remained in the single digits despite a modest increase from the weekend.
Tensions have also extended to the Red Sea. Yemen’s Houthi movement said it launched missiles at vessels it described as a Saudi military ship and four accompanying vessels. The group has previously targeted shipping in the region, contributing to disruptions along key maritime trade routes.
Analysts said prolonged uncertainty over the conflict could ke
