Brent Crude Tops $90 Amid Fading Hopes for Middle East Conflict Resolution

Oil prices surged on Tuesday as Brent crude topped $90 per barrel amid fading hopes for an early resolution to the Middle East conflict. The escalating tensions between Iran and the US have renewed concerns about potential disruptions to oil supplies through the strategically important Strait of Hormuz.

The uncertainty surrounding the war has weakened expectations of renewed negotiations and a possible resumption of normal oil tanker movements through the waterway. A senior Iranian official told Reuters on Monday that Iran would move to a 'fully offensive' military posture as efforts to negotiate a permanent end to the conflict with the US had stalled.

The Strait of Hormuz is a crucial route for international oil shipments, and any prolonged reduction in tanker traffic could increase concerns over the availability and delivery of crude. According to ship-tracking data from Kpler, only five commodity vessels crossed the Strait on Saturday following attacks on tankers, compared to 31 vessels that travelled through the waterway the previous weekend.