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LONDON: Oil prices climbed about two per cent to a one-month high on Tuesday after the US reimposed a naval blockade on Iran, which will reduce oil flows from the region through the Strait of Hormuz.
Before the Iran war about 20pc of global oil supplies flowed through the strait.
Limiting price gains were concerns that higher energy prices could boost inflation, cut global economic growth and ultimately reduce demand for oil. Brent futures rose $1.43, or 1.7pc, to settle at $84.73 per barrel, while US West Texas Intermediate (WTI) crude rose $1.20, or 1.5pc, to settle at $79.34.
For the second straight session, Brent closed at its highest since June 12 and WTI at its highest since June 15. That price increase kept Brent in technically overbought territory for a second day in a row for the first time since March.
