Crude oil traded near $83 per barrel on Tuesday, hovering around five-week highs, as US strikes on Iran entered a tenth consecutive day and Tehran continued retaliatory attacks against neighboring countries. Tensions escalated after President Donald Trump warned that Iran would be held responsible for the deaths of three US service members.
Iran-backed Houthi militants also declared a maritime embargo on Saudi Arabia, heightening concerns about energy shipments through the Red Sea. At the same time, Iran said mediators had proposed measures aimed at easing tensions with the US after several days of hostilities, with reports suggesting a possible 10-day ceasefire.
Vessel traffic through the Strait of Hormuz declined sharply this week following Iranian attacks on ships over the weekend, tightening the global supply outlook and providing continued support for oil prices.
