Oil prices rose about 4% on Tuesday as world hopes for peace in the war with Iran were diminished over the latest exchange of words between Iranian leaders and President Trump.
It was the third consecutive session where oil prices rose and traders grew more concerned about the depletion of the world’s oil supplies and the continued closure of the Strait of Hormuz.
The gains were reported as President Trump left for China where he hopes to convince China to apply pressure on Iran.
West Texas Intermediate finished up $4.11 or 4.19% at $102.18 a barrel on the New York Mercantile Exchange.
Brent crude rose $3.56 or 3.42% and closed at $107.77 a barrel.
The 3% and 4% gains for both benchmarks came a day after each rose about 3% on Monday.
EIA: STRAIT MAY BE CLOSED TO LATE MAY
The U.S. Energy Information Administration on Tuesday said it now assumes the strait will be effectively closed through late May, leading to much larger losses of Middle Eastern oil and gas supplies than its prior forecasts. The agency had earlier expected the waterway would be shut through late April.
Natural gas slumped in Tuesday’s trading, settling at $2.836 MMBtu after a fall of $0.074 or 2.54%.
It was something of a split day for Oklahoma energy stocks. LSB Industries rose 4% for the day while the largest percentage decline was 3% at USA Rare Earth Inc.