Oil Prices Rise for Fourth Day as Hormuz Traffic Slows

Crude oil prices continued to climb for a fourth consecutive day on Tuesday, as increased tanker traffic through the Strait of Hormuz appeared to be slowing. The tension between Iran and the United States has escalated, as both nations have shown no interest in resuming negotiations. Brent crude is currently trading at $91.53 per barrel, and West Texas Intermediate is at $85.47 per barrel, two days after the June ceasefire deal between the U.S. and Iran expired, which collapsed early in July.

President Trump has affirmed that the Strait of Hormuz remains open, but Iran claims it is still closed. This has led to reports of tankers veering away from the key shipping lane. On Tuesday, the UK Maritime Trade Operations reported a strike on a cargo ship in Hormuz, reportedly caused by an "unknown projectile" while the vessel was exiting the Strait.

The shipping risks are rising again due to ongoing attacks from Iran and the Houthis in both vital chokepoints, according to June Goh, a senior oil analyst at Sparta Commodities. While Goh noted that Gulf producers are seeking alternative export routes to bring oil through the Gulf of Oman, which could potentially boost shut-in production if maintained.

Saudi Arabia is reportedly offering crude shipments from locations off the coast of Oman, exploring alternative export pathways outside the Persian Gulf. This includes marketing Arab Medium and Arab Heavy grades through ship-to-ship transfers from terminals like Sohar.