Brent crude futures surged over 2% on Tuesday following U.S. military strikes in Iran, maintaining market uncertainty as negotiations to end the conflict and reopen the Strait of Hormuz remain stalled. Brent prices rose by $2.36, or 2.5%, to $98.50 a barrel, recovering from a 7% drop in the previous session. U.S. West Texas Intermediate crude saw a slight increase to $91.95, although it remains down significantly from last week.
The U.S. strikes, combined with Israeli actions against Hezbollah, have contributed to rising Brent prices and increased the gap with WTI. U.S. Secretary of State Marco Rubio indicated that negotiations with Iran could take several days, dampening hopes for a swift resolution. Since the conflict began, Iran has largely blocked non-Iranian shipping through the Strait of Hormuz, disrupting about 20% of global oil and LNG flows.
As talks between Iran’s negotiators and Qatar’s prime minister continue, both Washington and Tehran report progress on a potential memorandum of understanding to halt hostilities. Analysts suggest traders are optimistic about a breakthrough that could restore navigation in the Strait, with recent ship-tracking data indicating some LNG tankers have successfully passed through.
