Oil prices rose on Tuesday after a senior Iranian official said the Strait of Hormuz would not be reopened until Washington meets Tehran’s conditions. U.S. West Texas Intermediate crude futures climbed 1.3% and closed at $83.20 per barrel. Brent crude, the international benchmark, rose 1.36% to $88.91 per barrel. Prices are up more than 6% this week as hopes for a deal to increase shipping volumes through the Strait of Hormuz fade. According to Reuters, Iran’s Supreme National Security Council secretary Mohsen Rezaei demanded that the U.S. unfreeze Iranian funds held abroad as a condition for reopening the Strait of Hormuz.
This week, President Donald Trump toughened his rhetoric, demanding that Iran pay reparations to the U.S. A week ago, Treasury Secretary Scott Bessent said in a CNBC interview that a new Strait of Hormuz agreement could be reached soon. According to analytics firm Kpler, the number of ships passing through the Strait of Hormuz remained very low on Monday: only eight vessels crossed the strait. Before the U.S. and Israeli attack on February 28, more than 130 ships passed through Hormuz daily.
Oil inventories in the U.S. Strategic Petroleum Reserve fell below 300 million barrels, reaching the lowest level in more than four decades.