Oil rises for third straight session as hopes for Washington-Tehran deal fade

Oil prices edged higher for a third consecutive session on Tuesday as prospects for an agreement to end the war in the Middle East diminished after Iran said it would adopt a more offensive posture, while the United States ruled out extending the ceasefire agreement, fueling concerns that disruptions to energy supplies could persist for longer.

Brent crude futures rose 7 cents, or 0.08%, to $90.94 a barrel by 10:31 GMT, while US West Texas Intermediate crude futures gained 53 cents, or 0.63%, to $85.03 a barrel.

Iran insists on keeping Strait of Hormuz closed

Signs of progress in peace talks and efforts to restore oil tanker traffic through the strategic waterway have stalled, threatening to prolong the conflict that began when the United States and Israel launched attacks on Iran on February 28.

Iran's chief negotiator Mohammad Bagher Ghalibaf said Iran would keep the Strait of Hormuz closed until the United States fulfills the terms of the temporary agreement signed in June, after Trump had previously described the agreement as "over."

Ghalibaf's comments came after a senior Iranian official told Reuters on Monday that Tehran would shift to a "fully offensive" military posture as efforts to bring the war to a permanent end faltered.

Nevertheless, some oil shipments continue to pass through the Strait of Hormuz, although the number of vessels making the transit has fallen to single digits.

Iran is separately negotiating with Oman over an agreement to manage shipping traffic through the Strait of Hormuz, with Tehran saying the two sides are close to reaching a deal.

Trump, however, responded to those talks by threatening to bomb Oman, a country that has long been a US security partner.

In a separate development in the Middle East, Yemen's Houthis launched missiles in an attack on vessels they said included a Saudi military ship and four escort vessels in the Red Sea.