U.S. Oil Rises to $83.20 as Iran Demands Conditions for Strait
Key Points
- U.S. West Texas Intermediate crude gained 1.3% to close at $83.20 per barrel on Tuesday.
- Iran's Secretary of Supreme National Security Council Mohsen Rezaei demanded the U.S. unfreeze Iranian funds as a condition for reopening the Strait of Hormuz.
- Ship transits through Hormuz fell to just eight vessels on Monday, down from more than 130 before the February 28 attacks.
Despite conflicting signals about a potential deal, Pakistan's Defense Minister Khawaja Asif told Bloomberg News that "things are shaping up again in favor of a peace arrangement or a deal." Islamabad had mediated an interim U.S.-Iran agreement in June that quickly collapsed, triggering the resumption of fighting in the Strait.
Energy Secretary Chris Wright stated Tuesday that oil exports through Hormuz have reached a seven-day moving average of 9 million barrels per day thanks to U.S. military support. Total oil flows from the Gulf region, including pipeline exports, are averaging around 15 million barrels per day, Wright said.
Read Next
AUSTRAC Suspends Cryptolink, Forces 96 ATMs Offline in Australia
12 hours ago
Singapore Raises 2026 Growth Forecast to 4.5-5.5% on AI Boost
20 hours ago
President Trump has escalated demands this week, calling for Iran to pay reparations to the U.S. One week earlier, Treasury Secretary Scott Bessent told CNBC that a new Hormuz deal could come soon, but an agreement has not materialized.
The disruption has forced the Trump administration to tap U.S. strategic reserves. Oil stockpiles in the U.S. Strategic Petroleum Reserve have fallen below 300 million barrels to the lowest level in more than four decades, according to Department of Energy data released Monday. Trump ordered the release of 172 million barrels in March to manage the disruption caused by the Iran conflict.
Related coverage: AUSTRAC Suspends Cryptolink, Forces 96 ATMs Offline in Australia
The sharp decline in Hormuz transits reflects the severity of the maritime disruption. The jump from eight to nine million barrels per day through Hormuz via U.S. military escort, combined with the 15 million barrel daily flows when pipelines are included, shows the U.S. is managing around 60 percent of normal regional oil output through alternative routes—a level unsustainable long-term without either a diplomatic breakthrough or continued military protection at significant cost.
Market Outlook
Oil prices will likely remain elevated above $83 per barrel unless diplomatic negotiations advance. If Iran's conditions are not met within weeks, prices could test $90 per barrel as supply disruptions persist. A breakthrough deal would reverse gains quickly; continued military standoff favors further upside in crude prices through summer.
Sources: CNBC and other international news outlets.
Disclaimer: This article was produced with AI assistance based on publicly available news sources. While we strive for accuracy, NewsOracle makes no warranty as to the completeness or accuracy of the information. Errors and omissions may occur. Readers should independently verify all information before acting on it. NewsOracle does not intend to defame any individual or organisation and accepts no liability for any loss or damage arising from reliance on this content. Content is for informational purposes only and does not constitute legal, financial, medical, or professional advice. All rights reserved. Unauthorised reproduction prohibited.
NewsOracle Editorial
The NewsOracle Markets Desk covers stock markets, cryptocurrency, economic policy and breaking financial news from Wall Street and global exchanges.
Latest coverage: Oil
