Brent Nears $90 as Strait of Hormuz Uncertainty Keeps Oil Markets on Edge

Crude oil prices continued their upward trend for a third straight day on Tuesday, with Brent nearing $90 a barrel amid uncertainty over the reopening of the Strait of Hormuz.

The latest rise in crude oil prices came despite the fact that only five vessels are currently transiting the Strait, compared to a daily average of around 14 after traffic recovered following a memorandum of understanding signed in June.

Fresh demands from US President Donald Trump against Iran added to the uncertainty surrounding the key energy chokepoint, with Trump calling for compensation from Iran over deaths linked to earlier conflicts.

The restricted flows through the Strait have tightened global supply conditions and supported crude prices, which market participants expect will continue to rise if traders holding bearish positions are forced to cover them.