Crude prices cross $90 as ceasefire hopes dim, Hormuz disruption weighs on supply
Oil prices climbed Tuesday as Middle East war concerns persisted. Iran signaled a more offensive military approach, and the US rejected extending the ceasefire. Shipping through the Strait of Hormuz significantly decreased following recent attacks. Tensions also escalated in the Red Sea with Houthi missile attacks. Crude oil inventories in the US are expected to have declined last week.
Oil prices climbed past $90 per barrel on Tuesday as the possibility of an early resolution to the Middle East conflict waned. While Brent crude crossed the psychological barrier, West Texas Intermediate (WTI) crude hovered near $85, marking the highest level since July. The surge comes amid uncertain prospects for peace talks and the potential disruption of oil shipments through the strategically important Strait of Hormuz.
Iranian officials have signaled a shift towards a more aggressive military stance, expressing frustration with stalled negotiations aimed at achieving a permanent ceasefire. In contrast, the United States has dismissed the idea of extending the temporary ceasefire agreement, further dampening hopes for a swift resolution.
Winds of conflict have also spread to the Red Sea, where the Houthis - a Yemeni insurgent group aligned with Iran - attacked what they claimed to be a Saudi military vessel and four escort ships using missiles. The strike underscores the widening ramifications of the ongoing tensions in the region.
Amid these developments, the United States has reportedly engaged in discreet back-channel talks with the Islamic Revolutionary Guard Corps, Iran's powerful military force. However, President Trump has denied extending the ceasefire agreement, publicly threatening to bomb Oman - a crucial US ally in the region. The situation remains tense, with diplomatic efforts seemingly stalling in the face of escalating hostilities.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
