Oil Prices Top $90 as Hormuz Tensions Rise After Deadline Passes

US oil benchmarks pushed higher Tuesday after the deadline for talks between Washington and Tehran passed without agreement, leaving the Strait of Hormuz under renewed strain. Brent crude crossed $90 a barrel for the first time in weeks and reached $91.63, while West Texas Intermediate futures climbed toward $84. Analysts tied the move to fresh statements from President Trump and Iranian officials that pointed to a longer standoff.

Trump told Fox News that Iran must “put up the white flag of surrender” and added that he would bomb Oman if that country interfered with American plans in the region. The remarks marked the second time the president has directed such language at the longtime Gulf partner. Iranian military spokesman Ebrahim Zolfaghari said Tehran would shift to a “fully offensive” posture if negotiations collapsed, and a cargo vessel came under attack in the strait early Tuesday, according to the UK Maritime Trade Operations agency.

Market reaction spread beyond energy contracts. Dow futures held near flat while S&P 500 contracts slipped 0.4 percent and Nasdaq-100 futures dropped 1 percent. Traders cited the jump in crude as a fresh inflation risk layered on top of already elevated bond yields, with the 10-year Treasury note reaching 4.72 percent and the 30-year note hitting 5.31 percent. The US Strategic Petroleum Reserve sits at its lowest level since 1982, limiting any quick buffer against further supply shocks.

Roughly one-quarter of global seaborne oil normally moves through Hormuz. A senior analyst at IG noted that even a modest tightening of that route would push traders to add long positions rather than sell the rally. Home Depot shares rose modestly in premarket trading after the retailer reported better-than-expected sales, but the broader mood remained cautious as companies and consumers face the prospect of sustained higher fuel costs.

The two-month window for a negotiated pause in the US-Israel conflict with Iran closed Monday with no breakthrough. Iranian statements signaled readiness for wider military steps, while Trump’s comments on Oman raised questions about whether additional countries could be drawn into the friction. Stock and commodity desks watched for any sign that diplomatic channels with Muscat might narrow further, which would add another layer to the geopolitical premium already visible in crude prices.