Brent and WTI crude settled at their strongest levels in more than three weeks on Tuesday after President Trump said no talks with Iran are underway, and the UAE reported two Iranian missiles fired at its territory. Vessel traffic through the Strait of Hormuz stayed near a standstill, but Saudi Arabia and Chinese buyers found ways to keep cargoes moving.
Brent crude settled at $91.02 a barrel, up 0.17%, the strongest close in more than three weeks. WTI finished at $84.94, up 0.52%, also its best close in more than three weeks. The move came after President Donald Trump said no talks with Iran are underway or scheduled, a day after an interim peace agreement between Washington and Tehran expired.
Both benchmarks extend weekly gains
Both contracts spiked further intraday, with Brent touching $92 a barrel and WTI reaching $85.01 before paring some of the gains. That leaves both benchmarks up more than 2% for the week.
Iran hardens its stance
Iran's chief negotiator said the Strait of Hormuz will stay closed until Washington meets the conditions of the interim deal signed in June. A senior Iranian official separately told Reuters the country would move to a fully offensive military posture as hopes for a settlement stall.
Iran's Foreign Ministry rejected the UAE's claim that Iranian forces had fired on it, after Abu Dhabi's defense ministry said it had detected two ballistic missiles from Iran that fell into the sea. Separately, the UK Maritime Trade Operations agency said a vessel was struck by an unknown projectile while transiting the strait, damaging its engine room and causing a crew casualty. Yemen's Houthis added to the tension, saying they had launched missiles at a Saudi warship and its escort vessels in the Red Sea.
Hormuz traffic still near a standstill
Vessel crossings through Hormuz have dried up despite the diplomatic back-and-forth. Kpler data showed confirmed crossings sliding to just three on Sunday. Overall crossings last week weakened 19.5% to 95, down from more than 130 ships a day before the war.
Yet physical supply is proving more resilient than the rhetoric implies: Saudi Aramco has resumed loadings from inside the strait and is offering cargoes via ship-to-ship transfers off Fujairah. Meanwhile, two Chinese shipping firms have begun collecting cargoes from outside the Gulf chokepoint.
Analysts said the market has largely absorbed months of similar headlines without a clear resolution, leaving prices supported but the upside for now still contained.
Sources: Investing.com, InvestingLive
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