Brent crude climbed toward $89 per barrel on Tuesday, rebounding from earlier losses as traders weighed intensifying conflict in the Middle East against renewed diplomatic efforts. The United States launched strikes for a 10th consecutive day after President Donald Trump vowed Iran “will pay” for attacks that killed American soldiers, while Tehran responded with missile and drone strikes on targets in Kuwait.
At the same time, hopes for de-escalation persisted after Iran confirmed it had received mediation proposals and reports emerged of talks on a possible 10-day ceasefire. Oil prices have remained highly volatile as markets react to shifting prospects for further escalation or a return to negotiations.
Adding to supply risks, Yemen’s Houthi movement threatened to block Saudi maritime traffic in the Red Sea, a critical export corridor that allows the kingdom to circumvent the Strait of Hormuz. Saudi Arabia said it would take all necessary measures, in line with international law, to safeguard its shipping.
