Oil Prices Surge on Iran's Aggressive Stance and Strait Closure

Oil prices surged to their highest level in over three weeks on Tuesday after Iran announced it would maintain an aggressive stance and keep the Strait of Hormuz closed. This move, combined with the US ruling out extending a ceasefire, sent oil futures up by modest margins.

Brent crude futures rose 15 cents, or 0.17%, to $91.02 per barrel, while U.S. West Texas Intermediate crude futures increased 44 cents, or 0.52%, to $84.94 per barrel. Both contracts reached their highest level since July 24.

Darrell Fletcher, managing director of Commodities at Bannockburn Capital Markets, attributed the market's muted response to the constant barrage of headlines with little concrete progress. He also noted that covert oil shipments from the Strait of Hormuz may be more significant than previously expected.