Oil Prices Surge as US-Iran Tensions Intensify

Oil prices surged on Tuesday as tensions between the US and Iran intensified. A senior Iranian official stated that Iran will adopt a more aggressive military posture, citing stalled negotiations for a permanent end to the war with the US.

The US has ruled out extending a temporary ceasefire agreement, further heightening concerns about energy supply disruptions. Brent crude futures climbed 27 cents to $91.14 per barrel, while US West Texas Intermediate crude futures rose 42 cents to $85.04 per barrel.

Chief market analyst Tim Waterer noted that the dual chokehold on the Strait of Hormuz and the Bab el-Mandeb remains a significant concern for supply risks. Iran has been negotiating an agreement with Oman to manage the strait, but the US responded by threatening to bomb the Gulf state, a longstanding security partner.