Oil prices climbed to their highest level in two months on Tuesday. Rising tensions between the United States and Iran increased concerns about global oil supplies.
Brent crude rose 62 cents, or 0.7 percent, to $91.49 per barrel. This marked its highest level since July 30.
West Texas Intermediate (WTI) crude also gained 75 cents. The US benchmark reached $85.25 per barrel, its highest level since July 31.
The latest price gains came as diplomatic efforts between Washington and Tehran showed limited progress. A senior Iranian official told Reuters that Iran could shift its military strategy toward a “fully offensive” approach.
The official also said efforts to reach a lasting end to the conflict had stalled. The comments increased concerns about a wider regional escalation.
The Strait of Hormuz remains a major focus for oil markets. The strategic waterway carries a significant share of global energy shipments.
Talks to restore normal maritime traffic through the strait have made little progress. As a result, traders remain concerned about possible disruptions to oil supplies.
Tim Waterer, head of market analysis at KCM, said US-Iran tensions supported the latest rise in oil prices. He said relations between Washington and Tehran appeared increasingly unstable.
A missile also struck a vessel traveling through the Strait of Hormuz on Tuesday. The incident added to concerns about maritime security and energy shipments.
Meanwhile, Yemen’s Houthis reported another attack in the Red Sea. The group said it targeted a Saudi military vessel and four accompanying ships.
The incidents have added pressure to an already tense regional security environment. They also increased concerns about possible disruptions to global trade routes.
Energy markets now remain focused on diplomatic developments. Traders are watching whether negotiations can prevent further escalation.
Suvro Sarkar, head of energy research at Singapore-based DBS Bank, expects geopolitical risks to support oil prices.
He said prices could remain between $80 and $100 per barrel through the fourth quarter. He also expects the range could continue into 2027 if negotiations fail.
The latest gains highlight the impact of geopolitical risks on oil markets. Continued tensions could keep prices elevated in the coming months.
For now, traders are closely monitoring Iran, the Strait of Hormuz, and wider Middle East developments.
