Oil Prices Rise as Hopes Fade for Strait of Hormuz Reopening
Oil prices rose by more than 1% on Tuesday as hopes dimmed for a near-term agreement to reopen the Strait of Hormuz, underscoring concerns about disruption along one of the world’s most important energy transit routes.
The increase came after fresh remarks by US President Donald Trump. A day earlier, he claimed that the United States is now the only power controlling the waterway and that the US naval blockade against Iran had “never been broken.”
Trump also said the United States still has the ability to sharply escalate pressure on Iran, comments that, according to the report, increased investor concerns and boosted oil prices.
According to published figures, West Texas Intermediate crude for September delivery rose 1.45% to $83.39 a barrel by 2:41 a.m. Eastern time. At the same time, Brent crude for October settlement also gained 1.24% to trade at $88.95 a barrel.
The Strait of Hormuz is considered one of the key oil transit routes in the region, and any tension or uncertainty over traffic through the waterway typically has an immediate effect on global energy markets.
