Oil prices hit three-week highs amid Middle East tensions

Oil prices have risen for three consecutive sessions, reaching three-week highs as prospects for a Middle East peace deal diminish. Brent crude futures climbed 1% to $91.76 a barrel, while U.S. West Texas Intermediate reached $85.55.

Heightened energy supply concerns follow reports that Iran may adopt a “fully offensive” military posture as peace efforts stall. Additionally, the United States has ruled out extending a temporary ceasefire pact. Tensions in critical shipping lanes remain high; a projectile struck a vessel transiting out of the Strait of Hormuz, and Houthi militants reported attacks on vessels in the Red Sea.

Market analysts note that stalled progress in reopening the Strait of Hormuz and unresolved talks between Iran and Oman regarding the waterway continue to fuel uncertainty. Traders are also monitoring upcoming U.S. oil inventory data amid a short-term bullish technical phase for crude oil.