Oil prices have edged higher for the third consecutive day, hovering near three-week peaks as diplomatic efforts to resolve the Middle East conflict falter. Global markets are reacting sharply to the breakdown in negotiations, particularly after the U.S. refused to extend a ceasefire and Iran signaled a shift toward a more aggressive military posture. This heightened geopolitical friction has sparked significant concern among investors regarding potential long-term disruptions to energy supplies, especially as the strategic Strait of Hormuz remains a central flashpoint in the dispute.

The uncertainty is further compounded by conflicting signals regarding tanker traffic. While some limited oil shipments continue to flow through the Strait—aided by Saudi Aramco’s ship-to-ship transfers off the coast of the UAE—analysts warn that Iran retains the capacity to completely throttle these routes at its discretion. With peace talks effectively stalled and additional volatility emerging from Houthi missile activity in the Red Sea, energy experts suggest that this instability could significantly influence crude price projections well into the coming years.