Oil Prices Rebound as Hormuz Shipping Constraints Persist
Oil prices rose on Tuesday after steep falls in the previous session as shipping through the Strait of Hormuz remained constrained, outweighing expectations of renewed US-Iran talks aimed at ending the war in the Middle East.
The strait has been largely shut down for 45 days since Iran's Revolutionary Guards declared it closed, effectively shutting in about 20% of global oil and liquefied natural gas shipments. Despite a two-week ceasefire, transit through the waterway remains uncertain, with traffic at only a fraction of the 130-plus daily crossings seen before the war.
Brent crude futures rose $0.71, or 0.8%, to $95.50 a barrel after falling 4.6% in the previous session. US West Texas Intermediate crude was up $0.50, or 0.6%, to $91.78, which dropped 7.9% the session before.
US President Donald Trump said talks with Tehran on ending the war could resume this week after ending over the weekend without any agreement. However, the US has also enacted a blockade of shipping leaving Iranian ports that its military said has completely halted trade going in and out of the country by sea.