Oil prices rose again on Tuesday, continuing a strong rally as hopes for a breakthrough inUS-Iran peace talksfaded. Ongoing tensions in the Middle East, especially around the Strait of Hormuz, have kept traders worried about global oil supplies.
US West Texas Intermediate (WTI) crude was trading at $97.31 a barrel, up 0.98%. Meanwhile, Brent crude, the global benchmark, climbed to $109.30 a barrel, gaining nearly 1%.
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The rally follows a sharp jump on Monday, when oil prices surged to their highest levels in two weeks. Brent crude settled at $108.23 a barrel, up $2.90, or 2.8%. WTI closed at $96.37, rising $1.97, or 2.1%.
The main reason behind the rise is growing concern over supply disruptions. The conflict in the Middle East has now entered its second month, and the situation around the Strait of Hormuz remains highly tense. This narrow waterway is one of the world's most important oil shipping routes.
The Strait of Hormuz handles nearly 20% of global oil and gas trade. Any disruption there can quickly affect energy markets worldwide.
Shipping activity through the route has remained under pressure. Iran has continued to impose restrictions, requiring vessels to seek its approval before passing through the Strait. At the same time, the United States has maintained its blockade of Iranian ports and vessels.
US President Donald Trump recently said that the United States has "total control" over the route.
Investor sentiment was also hit by a setback in diplomatic efforts. Over the weekend, hopes of progress weakened after Trump cancelled a planned visit to Islamabad by his envoys, Steve Witkoff and Jared Kushner.
The cancellation came as Iranian Foreign Minister Abbas Araqchi had already arrived in Pakistan, raising fresh doubts about the future of negotiations.
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