Oil prices extended Monday’s rally into Asian trading on Tuesday, pushing Brent crude to its highest level in a month as renewed hostilities between the United States and Iran and Washington’s renewed blockade of Iranian oil exports injected fresh geopolitical risk into global energy markets.
International benchmark Brent crude climbed 2.24 percent to $85.17 per barrel, exceeding the $85 threshold, while US benchmark West Texas Intermediate (WTI) gained 2.46 percent to $80.06 per barrel.
The latest gains come after both benchmarks surged eight percent on Monday, leaving oil prices 12 percent higher than their levels last Friday.
Markets have been forced to reassess expectations that shipping traffic through the Strait of Hormuz would quickly return to normal following the June memorandum of understanding signed by Washington and Tehran, which aimed to open negotiations over the conflict.
Rather, traders are now pricing in the possibility of prolonged disruptions to one of the world’s most important oil transit routes.
