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Oil jumps as Iran turns offensive, US rejects ceasefire extension
Iran shifts to "fully offensive" posture, US rejects ceasefire extension, choking Hormuz tanker traffic. Brent nears $91.50, WTI above $85. Shipping data shows only five vessels transited the strait Saturday.
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Oil prices rose on Tuesday after a senior Iranian official said the country would shift to a “fully offensive” military posture, and the Trump administration ruled out extending the temporary ceasefire. The statements pushed a negotiated end to the West Asia conflict further out of reach and kept the Strait of Hormuz effectively closed to tanker traffic.
Brent crude futures climbed 27 cents, or 0.3%, to $91.14 a barrel by 0003 GMT, after touching their highest since July 30 on Monday. US West Texas Intermediate crude rose 42 cents to $85.04, having gained more than 1% earlier in the session to $85.37, their highest since July 31.
“Oil has jumped to start the week as US-Iran relations look increasingly shaky,” said Tim Waterer, chief market analyst at KCM. “A deal to reopen the Strait of Hormuz still does not appear to be in sight, and shipping numbers remain at a trickle.”
Ship-tracking data from Kpler showed only five commodity vessels transited the strait on Saturday, with none registered for Sunday. That compares with 31 in the prior weekend. The waterway handles about a fifth of the world's oil supply, and its effective closure has removed roughly 1.5 million barrels a day of seaborne crude from the market since late February.