Oil climbs as fading US-Iran peace hopes raise supply risks
XLE•Crude benchmarks hit recent highs
Brent crude futures LCOc1 climbed 27 cents, or 0.3%, to $91.14 by 0003 GMT, after rising to their highest since July 30 on Monday.
U.S. West Texas Intermediate crude futures CLc1 were up 42 cents to $85.04 a barrel, after gaining more than 1% earlier in the session to $85.37, their highest since July 31.
"Oil has jumped to start the week as U.S.-Iran relations look increasingly shaky. A deal to reopen the Strait of Hormuz still does not appear to be in sight, and shipping numbers remain at a trickle," said chief market analyst at KCM, Tim Waterer.
Oil prices rise on worsening U.S.-Iran relations
Oil prices rose on Tuesday as a deal to end the Middle East war seemed further out of sight with Iran saying it will adopt a more offensive stance and the U.S. ruling out extending a ceasefire agreement, heightening worries about energy supply.
Iran will shift to a "fully offensive" military posture because efforts to negotiate a permanent end to the war with the U.S. have stalled, a senior Iranian official told Reuters on Monday, as Washington ruled out extending a temporary ceasefire agreement.
