Oil climbs as Iran missiles and stalled Hormuz talks keep supply risk elevated

UAE halts Iran trade as Trump confirms blockade remains in force

Oil prices climbed for a fourth consecutive session on Tuesday, extending a run of gains tied to stalled negotiations over the Strait of Hormuz and the Iranian missile strikes in the waterway. In early European trading, Brent crude was up 0.2% at $91.26 a barrel and West Texas Intermediate futures rose 0.3% to $84.37 a barrel, according to The Wall Street Journal. In Asian trade earlier, front-month WTI had traded 0.5% higher at $85.34 per barrel.

President Trump said Tuesday that there are no ongoing or scheduled talks with Tehran and that the U.S. naval blockade of the strait remains in full force. The negotiations aimed at reopening the waterway and ending hostilities in the strait have stalled after nearly six months of conflict between the United States and Iran.

The price moves came after Iran fired two ballistic missiles toward the Strait of Hormuz on Tuesday, triggering air defenses in the UAE, according to the UAE’s Ministry of Defense. The ministry said the missiles targeted maritime traffic but eventually dropped into the sea.

Separately on Tuesday, an Iranian attack hit the engine room of a bulk carrier in the strait east of Oman.

The UAE has halted trade and financial transactions with Iran following the Iranian missile attacks and the bulk carrier strike.

Analysts pointed to a sustained risk premium embedded in prices. “Brent crude remains above $90 a barrel as geopolitical tensions and uncertainty surrounding the Strait of Hormuz keep a significant risk premium in energy markets,” analysts at IG said.

In a separate research report, ANZ Research analysts wrote: “Renewed attacks in the Middle East raise the prospect of ongoing disruptions to supply.”