Oil prices rise as Middle East ceasefire prospects recede

Nicosia, Cyprus. Oil prices rose for a third consecutive session on Tuesday as prospects for an agreement to end the Middle East war diminished, heightening concerns over energy supplies.

Market prices

Brent crude futures rose 89 cents, or 1%, to $91.76 a barrel by 0641 GMT, their highest level since July 30, after gains in the previous session.

U.S. West Texas Intermediate crude futures gained $1.05 to $85.55 a barrel, reaching their highest level since July 31.

Ceasefire and shipping concerns

Iran will move to a “fully offensive” military posture after efforts towards a permanent end to the war stalled, a senior Iranian official told Reuters on Monday.

Washington ruled out extending its temporary ceasefire pact. Progress in peace talks and the resumption of oil tanker traffic through the Strait of Hormuz have halted, threatening to prolong the conflict launched by the United States and Israel with attacks on Iran on February 28.

“A deal to reopen the Strait of Hormuz still does not appear to be in sight, and shipping numbers remain at a trickle,” said Tim Waterer, chief market analyst at KCM.

Maritime attacks

A projectile struck a vessel transiting out of the Strait of Hormuz on Tuesday, according to tracking data. The incident was the latest in a series of attacks that have kept crossings in single digits, despite a slight increase from the weekend.

Yemen’s Houthis said they launched missiles at vessels they described as a Saudi military ship and four escorts in the Red Sea. The group’s military spokesperson, Yahya Saree, made the statement on Telegram.

“The lack of any kind of deal will have an impact on oil price expectations further out in 4Q and even in 2027,” said Suvro Sarkar, DBS Bank’s head of energy research.