Brent and WTI settled near $89 and $83 respectively after Iran confirmed the strait remains closed despite diplomatic talks.
Oil prices ended Tuesday higher after a volatile session driven by conflicting geopolitical signals. Brent crude settled around $89 and WTI near $83, both up roughly $1, as Iran reiterated its blockade of the Strait of Hormuz would continue regardless of ongoing negotiations with Oman. The physical market remains tight, with shipping traffic through the strait at about half its recent average.
Earlier gains from attacks in the Bab al-Mandeb were erased after reports of progress in Oman-Iran talks, but prices rebounded when U.S. forces intercepted a vessel attempting to breach the blockade. The session’s choppy trading reflected market hesitation to fully price in either escalation or de-escalation risks.
Despite the day’s volatility, both benchmarks closed well within their session ranges, signaling traders’ reluctance to commit to a clear directional bias. The EIA also raised its crude price forecasts, citing heightened Middle East supply risks.