Brent crude oil prices rose above $88 per barrel on Tuesday as uncertainty over the Strait of Hormuz continued to influence the global oil market.
Brent crude gained 95 cents, representing a 1.08 per cent increase, to reach $88.67 per barrel. US West Texas Intermediate also advanced by 96 cents, or 1.17 per cent, to $83.09 per barrel.
The price movement came amid fresh diplomatic efforts to ease tensions between the United States and Iran and resolve the crisis surrounding the strategic waterway.
Pakistan’s Defence Minister, Khawaja Asif, said there were indications that Washington and Tehran were moving closer to a possible agreement. Qatar also disclosed that talks involving Oman and Iran over the management of the Strait of Hormuz had reached an advanced stage.
Despite the diplomatic developments, Iran maintained that the waterway would remain closed until the United States met its conditions for ending the conflict.
The Strait of Hormuz is a critical route for global energy supplies, with a significant portion of the world’s crude oil and liquefied natural gas shipments passing through it. Continued disruption could therefore increase concerns over supply and keep oil prices elevated.
Iran’s newly appointed Supreme National Security Council secretary, Mohsen Rezaei, said the strait would not reopen unless Washington changed its position and accepted Tehran’s demands.
He also called for the release of Iran’s frozen assets and an end to the conflict across the region, including in Lebanon and Gaza.
Reports of further attacks on shipping in regional waters have added to concerns about the safety of vessels using the route.
Market watchers expect crude prices to remain sensitive to developments around the Strait of Hormuz. A prolonged closure could push prices higher, while an agreement that allows the waterway to reopen could ease supply concerns and put downward pressure on oil prices.
US President Donald Trump also commented on the ongoing negotiations, describing Iran as a difficult negotiating partner.
Pakistan and Qatar have been involved in diplomatic efforts aimed at reducing tensions and finding a resolution to the conflict.
