SINGAPORE — Oil prices climbed on Tuesday, August 11, as hopes for a deal between the United States and Iran to reopen the Strait of Hormuz weakened, adding fresh uncertainty to global energy markets.
Brent crude futures rose toward US$88 a barrel, while U.S. crude futures reached around US$82.45, with both benchmarks touching their highest levels since July 31. Oil prices had already surged about 5% in the previous session.
The latest gains came after negotiations between Washington and Tehran appeared to stall. U.S. President Donald Trump responded to Iran's conditions for a potential peace agreement by demanding compensation from Tehran for people killed in wars, attacks and protests.
The standoff has raised concerns over the future of the Strait of Hormuz, a vital global shipping route through which a significant share of the world's oil supplies passes.
Market analyst Tony Sycamore of IG described the situation as a prolonged standoff, with both sides waiting to see who will make the next move.
Analysts said oil prices could remain volatile as markets assess the possibility of a prolonged disruption to energy supplies.
The rise in oil prices also comes as investors await the latest U.S. inflation data, with higher fuel costs potentially adding to inflationary pressures and complicating expectations for future interest-rate decisions by the U.S. Federal Reserve.
Asian stock markets were mixed on Tuesday, reflecting continued uncertainty over inflation, interest rates and the impact of tensions in the Middle East.
For countries heavily dependent on imported oil, including the Philippines, prolonged disruptions around the Strait of Hormuz could put additional pressure on fuel prices and transport and production costs.
With negotiations still at an impasse, energy markets remain closely focused on developments between Washington and Tehran and any signs that the crucial waterway could be reopened.
