Oil prices surged above $110 a barrel on Tuesday as stalled US-Iran talks and ongoing disruption in the Strait of Hormuz heightened fears over global supply. Brent crude, the benchmark for most international oil, rose 2.28 per cent to $110.70 a barrel, while West Texas Intermediate gained 2.01 per cent to $98.31.
Markets remain volatile as Washington reviews Tehran’s latest proposal aimed at easing tensions. However, uncertainty persists after reports that shipping through the Strait of Hormuz remains largely blocked, tightening energy flows from the Gulf.
Vandana Hari, chief executive of Vanda Insights, said insurers have imposed stricter conditions for vessels crossing the route, adding pressure to already strained markets.
Goldman Sachs warned oil could approach $120 later this year if negotiations remain deadlocked and Middle East supply losses continue reducing global inventories.
