Oil inches up as Trump threatens to bomb Oman

Oil prices edged higher on Tuesday, extending gains to a third session, after Iran signalled a harder military line and declared the Strait of Hormuz will stay shut. The Express Tribune reported that Brent crude climbed to $91.46 a barrel by 1631 GMT, a gain of 59 cents or 0.7%, while US West Texas Intermediate rose 75 cents, or 0.9%, to $85.25. Earlier that day, both contracts had reached levels not seen in three weeks.

Iran's top negotiator, Mohammad Baqer Qalibaf, told state media the strait stays shut until Washington complies with the June interim agreement. Trump, who earlier called that accord over, now says talks with Tehran are neither under way nor planned, yet the waterway remains open. NinjaTrader's Tracy Shuchart called the muted reaction headline fatigue, arguing that physical supply conditions have barely changed in two weeks.

Reuters reported that a senior Iranian figure said on Monday Tehran would take a harsher military stance because efforts toward a lasting end to the war had stalled. Iran is also negotiating with Oman on a deal covering management of the strait and says an agreement is near, yet Trump has threatened to bomb Oman, a long-standing American security partner. SEB analyst Bjarne Schieldrop said Iran was probably able to stop oil exports through the strait entirely whenever it wished.