Brent crude rose above $91 a barrel, while U.S. West Texas Intermediate crude approached $85 a barrel.
LONDON: Global oil prices climbed to their highest levels since July on Tuesday as attacks on vessels near the Strait of Hormuz and a lack of progress in US-Iran negotiations heightened concerns over disruptions to crude supplies.
Brent crude rose above $91 a barrel, while U.S. West Texas Intermediate crude approached $85 a barrel. Reuters reported that Brent reached $91.07 a barrel, marking its third consecutive session of gains, while WTI traded around $84.99. Other market reports put Brent as high as $91.60 a barrel.
The latest price increase followed a report by the United Kingdom Maritime Trade Operations that a commercial vessel was struck by a projectile of unknown origin while departing the Strait of Hormuz.
The incident reportedly damaged the vessel’s engine room. One crew member was reported killed or injured, while other crew members were rescued by the Omani coast guard.
No group has claimed responsibility for the incident. Iran’s Revolutionary Guard and Yemen’s Houthi movement have neither confirmed nor denied involvement.
Oil prices have also been supported by uncertainty surrounding a 60-day ceasefire between the United States and Iran and the lack of progress toward extending the truce or resuming negotiations.
US President Donald Trump has rejected an extension of the ceasefire, while Iran has indicated it could adopt a more aggressive military posture if negotiations fail.
Iran has said the Strait of Hormuz will not be fully reopened until the United States meets the terms of an agreement, while Washington continues to maintain pressure on Tehran.
The developments have disrupted the movement of petroleum products through the Strait of Hormuz and the Bab el-Mandeb, raising concerns over fuel and gas supplies and pushing prices higher.
Saudi Arabia has resumed some crude oil loading operations from inside the Strait of Hormuz using ship-to-ship transfers near Fujairah for Asian buyers, Reuters reported.
Between Aug. 12 and Aug. 16, about 6 million barrels of Saudi crude were loaded onto three large oil tankers through the alternative arrangement, according to the report. However, the method does not fully replace normal shipping routes.
Meanwhile, several major shipping operators have begun avoiding the Strait of Hormuz and Bab el-Mandeb because of heightened security risks.
Chinese state-owned shipping companies have also reduced operations through key regional waterways and shifted some vessels toward alternative routes near Fujairah and Oman.
