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Oil Prices Surge as Iran Keeps Hormuz Shut

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Oil prices rose to a one-week high on Tuesday as doubts about a potential US-Iran peace deal fueled concerns that Middle East supply disruptions would persist.

Brent futures climbed $1.19, or 1.4%, to settle at $88.91 a barrel, while West Texas Intermediate (WTI) crude rose $1.07, or 1.3%, to settle at $83.20.

The Strait of Hormuz will remain closed as long as the US does not change its behavior and accept Iran's conditions to end the war, said Mohsen Rezaei, secretary of Iran's Supreme National Security Council.

About 20% of global oil supply passed through the Strait before the start of the Iran war on February 28. Shipping data showed that traffic through the Strait dropped to six vessels on Monday, compared with a 10-day average of about 11 vessels.

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