Iran is preparing to adopt a “fully offensive” military posture after efforts to negotiate a permanent end to its conflict with the United States stalled, a senior Iranian official told Reuters on Monday.
The development came as Washington ruled out extending a temporary ceasefire, while progress towards peace talks and the resumption of oil tanker traffic through the strategically important Strait of Hormuz remained stalled.
Brent crude futures rose 27 cents, or 0.3 per cent, to $91.14 a barrel by 0003 GMT, after reaching their highest level since July 30 in the previous session. US West Texas Intermediate crude gained 42 cents to $85.04 a barrel, having earlier risen more than 1pc to $85.37, its highest since July 31.
Market analysts said uncertainty over US-Iran relations and continued disruptions in shipping through the Strait of Hormuz were adding to concerns over global oil supplies.
According to ship-tracking data from Kpler, only five commodity vessels passed through the Strait of Hormuz on Saturday following attacks on tankers, while none were recorded on Sunday, compared with 31 vessels during the previous weekend.
Meanwhile, Yemen’s Houthi rebels claimed to have attacked a Saudi military ship and four escort vessels in the Red Sea with missiles, according to the group’s military spokesperson Yahya Saree.
Analysts said disruptions at both the Strait of Hormuz and the Bab el-Mandeb were contributing significantly to supply risks in global oil markets.
Iran has separately been negotiating with Oman on an agreement to manage shipping through the Strait of Hormuz and says the two sides are close to a deal. However, US President Donald Trump responded by threatening to bomb Oman, a longtime US security partner.
Despite the stalled negotiations, media reports suggested that Trump had opened back-channel talks with Iran’s Islamic Revolutionary Guard Corps, offering a potential opening for diplomacy.
