Brent crude futures neared $90 per barrel on Tuesday during a sharp price rally. Optimism for a U.S.-Iran agreement to reopen the Strait of Hormuz faded following new demands from Washington. President Donald Trump stated on Monday that any deal must include compensation for past attacks.
This condition complicates negotiations and prolongs the closure of the vital waterway. Shipping traffic through the strait has fallen dramatically, heightening global supply and inflation concerns.
European natural gas prices reached near two-week highs. The impasse affects roughly one-fifth of global LNG transport. Energy stocks gained on the uncertainty, with European majors BP and Shell seeing significant increases.