WTI crude futures climbed back above $98 per barrel on Tuesday, recovering from the prior session’s sharp losses as investors continued to gauge how the conflict in the Middle East could affect global oil supply. Iran has intensified its attacks on energy infrastructure across the region, even as most countries have so far declined to back US President Donald Trump’s call to help safeguard commercial traffic through the Strait of Hormuz.
On Monday, the US crude benchmark dropped more than 5% after several tankers successfully passed through the Strait over the weekend, fueling optimism that the key waterway might soon fully reopen. India is now in talks to secure six additional vessels, while a number of countries are reportedly engaging in back-channel negotiations with Iran to guarantee safe passage for their ships. At the same time, the US is allowing Iran to continue exporting crude through Hormuz, and a direct communication line between Washington and Tehran has reportedly been activated.
