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Global crude benchmarks advanced on Tuesday to reach their highest settlement levels in a week, as hardline rhetoric from Tehran dashed expectations for a swift diplomatic resolution to restore traffic through the Strait of Hormuz.

International Brent crude futures rose $1.19, or 1.4%, to settle at $88.91 a barrel. US West Texas Intermediate (WTI) crude gained $1.07, or 1.3%, to finish at $83.20 a barrel.

Pricing momentum was sustained for a second consecutive session after the secretary of Iran’s Supreme National Security Council affirmed the waterway will remain closed until Washington accepts Tehran's peace conditions. Maritime paralysis intensified as daily vessel transits through the chokepoint fell to six on Monday, compared with a pre-conflict baseline of 125 to 140 ships daily.

Supply concerns were heightened after the US Energy Information Administration warned regional producers would struggle to restore output to pre-war levels before late 2027.

Bullish sentiment was further reinforced by escalating physical supply disruptions across secondary trade routes. In North Africa, Libya’s National Oil Corporation warned of potential force majeure declarations following drone attacks on infrastructure in Zawiya. In Europe, Ukrainian forces targeted Russia’s Orsk oil refinery, while Iran-aligned Houthi forces struck a Saudi vessel in Bab el-Mandeb, maintaining severe geopolitical risk premiums across key energy transit corridors.

Written by: Aiman Haikal