FX.co ★ Oil Holds Near Highs as Hormuz Risks Persist

Crude oil hovered around $85 a barrel on Tuesday, with ongoing uncertainty over the Strait of Hormuz providing continued support for prices. Tensions in the region remain high, and there is little indication that the United States and Iran are close to any agreement over control of the key shipping corridor.

President Donald Trump stated that Washington is neither engaged in nor planning talks with Tehran, while confirming that the US naval blockade remains in force. Although he asserted that the strait is open and that mines have been cleared, shipping risks remain significant. According to UK maritime authorities, a vessel was reportedly attacked while exiting the strait, sustaining damage to its engine room and resulting in a crew casualty.

At the same time, Gulf producers are increasingly turning to alternative routes and strategies to keep exports flowing despite the disruption. Saudi Arabia has begun offering crude cargoes sourced from outside the chokepoint, a move that suggests it may be adopting measures similar to those of the United Arab Emirates to transport oil through or around the affected area.