Brent crude futures edged up to hit US$88 per barrel and US crude futures ticked up to US$82.45, both the highest levels since Jul 31, after the contracts rallied roughly 5 per cent on Monday.

Brent crude added 0.9 per cent to US$84.32 a barrel as shipping through the vital waterway remained at a trickle, while US crude rose 0.7 per cent to US$78.74 a barrel.

Crude gains as traders watch for progress in US-Iran talks that could pave the way for a deal to secure passage through the Strait of Hormuz.