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Brent crude closed above $90 per barrel on Monday as renewed tensions in the Strait of Hormuz pushed oil prices higher.
Iran threatened military action if diplomatic efforts to end its war with the United States fail.
Brent was quoted at $90.53 per barrel, gaining $2.01 or 2.27%, while US West Texas Intermediate rose to $84.25, up $1.85 or 2.25%, according to oilprice.com.
Reuters reported that Tehran had shifted its policy from defensive to “fully offensive” after peace talks stalled.
A senior Iranian official told Reuters that Iran was prepared to launch a “timely and precise” military attack to break the US naval blockade if diplomacy collapsed.
The threat raised fears of further disruption to tanker movements through Hormuz, a key global energy corridor.
The escalation came as Iran and the US failed to reach a final agreement under a June memorandum of understanding, which had set a 60-day deadline for broader talks on Iran’s nuclear programme and US sanctions. Disagreements over control of Hormuz derailed the interim deal.
Tehran insists the June agreement gave it rights to manage the waterway, while Washington rejected that interpretation. Hostilities resumed, with Iran firing on vessels it said were using unauthorised routes. US President Donald Trump declared the agreement over on July 7.
Iran has now given the US only a few weeks to implement provisions of the collapsed deal before further negotiations. Meanwhile, Tehran is negotiating separately with Oman over management of Hormuz.
The situation was complicated by Trump’s warning, “If Oman gets in the way, we’ll bomb the shit out of them,” he told Fox News.
The renewed threats have heightened concerns over shipping security and helped push crude prices above $90 after trading below $80 earlier this month.
About a fifth of global oil and liquefied natural gas once flowed through Hormuz, underscoring the stakes of the ongoing conflict.
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