US-Iran Tensions Send Oil Prices Soaring Amid Strait of Hormuz Standoff

Oil prices rose for a third consecutive day as tensions between the US and Iran escalated. The Strait of Hormuz, a crucial oil shipping route, remains closed after Iran's top negotiator said it would stay shut until the US meets certain conditions.

Brent crude futures increased by 59 cents to $91.46 per barrel, while US West Texas Intermediate crude rose 75 cents to $85.25 per barrel. The prices are at their highest since early July.

Iran's stance on the Strait of Hormuz has hardened after Washington ruled out extending a ceasefire. Senior Iranian official Mohammad Baqer Qalibaf stated that Iran would maintain its current military posture, which includes keeping the strait closed.

The situation took a surprising turn when US President Trump threatened to bomb Oman, a long-time security partner of the US, over negotiations with Iran on managing the Strait of Hormuz. Analysts say this move is unlikely to affect oil prices significantly, as it's seen as just another example of 'headline fatigue'.