LONDON: Oil prices climbed about two per cent to a one-month high on Tuesday after the US reimposed a naval blockade on Iran, which will reduce oil flows from the region through the Strait of Hormuz.

Before the Iran war about 20pc of global oil supplies flowed through the strait.

Limiting price gains were concerns that higher energy prices could boost inflation, cut global economic growth and ultimately reduce demand for oil. Brent futures rose $1.43, or 1.7pc, to settle at $84.73 per barrel, while US West Texas Intermediate (WTI) crude rose $1.20, or 1.5pc, to settle at $79.34.

For the second straight session, Brent closed at its highest since June 12 and WTI at its highest since June 15. That price increase kept Brent in technically overbought territory for a second day in a row for the first time since March.

“The resumption of attacks between the US and Iran is accelerating this week and will likely continue given the additional US bombing overnight that followed reinstatement of a US blockade of the Strait of Hormuz,” analysts at energy advisory firm Ritterbusch and Associates said in a note.

US President Donald Trump stepped back from a proposal to charge a 20pc fee to guard the Strait of Hormuz as part of the conflict with Iran, saying he would instead seek investment deals with Gulf states.

Hours before the fee was to take effect, Trump said the strait was open to all shipping traffic except that of Iran. After that comment, US crude futures briefly turned negative on Tuesday morning.

Published in Dawn, July 15th, 2026