Oil Prices Rise as US-Iran Ceasefire Expires, Hormuz Tensions Persist

Oil prices edged higher in early Asian trade on Tuesday, supported by escalating geopolitical risk in the Middle East after a ceasefire between the United States and Iran expired.

International benchmark Brent crude futures rose 0.3% to $91.09 a barrel, while U.S. West Texas Intermediate (WTI) crude futures advanced 0.4% to $84.85 a barrel by 21:06 ET (01:06 GMT), according to data from Investing.com.

Ceasefire Ends, Rhetoric Sharpens

The primary driver for the price increase was the expiration on Monday of a ceasefire agreement signed between Washington and Tehran in mid-June. According to the source report, U.S. President Donald Trump stated the U.S. would not seek an extension, renewing concerns about a potential escalation in the conflict.

President Trump reiterated claims that the U.S. maintains full control of the Strait of Hormuz, a key maritime chokepoint for global energy supplies. The report noted that Iran has denied these claims. Tensions were further stoked by a reported threat from the U.S. president to bomb Oman if the country interferes with U.S. objectives, following recent talks between Oman and Iran regarding shipping routes.

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Supply Risks Underpin Market

The ongoing crisis has severely impacted global oil logistics. The Strait of Hormuz, which handled approximately 20% of the world's oil supply before the conflict, has seen commercial traffic fall to a fraction of its normal levels.

Fears of potential attacks have deterred shipping through the waterway, significantly tightening crude supplies available to the global market. While Iran and Oman have reportedly discussed alternative shipping arrangements, no definitive agreement has been announced, leaving the market sensitive to any new developments in the region.