Brent crude oil prices climbed to $95 per barrel amid concerns over a potential closure of the Strait of Hormuz and ongoing negotiations between the United States and Iran.

Global oil prices continued to rise following the largest jump in about a month due to uncertainty regarding negotiations between the US and Iran, The Caspian Post reports, citing UNN.

Investors fear that the conflict surrounding the Strait of Hormuz could lead to prolonged disruptions in energy supplies.

August Brent crude futures traded near $95 per barrel after a 4.2% increase during the previous session. US WTI crude was priced under $92 per barrel. The price hike was triggered by reports that Tehran had allegedly halted negotiations with Washington in protest against Israeli strikes in Lebanon.

Subsequently, US President Donald Trump stated that the negotiation process is ongoing. According to him, a memorandum of understanding regarding the reopening of the Strait of Hormuz could be signed as early as next week, although the parties still need to agree on several key issues. Uncertainty regarding the future of the deal continues to affect the oil market.

Additional concern was raised by reports from the Iranian agency Tasnim that Tehran and its allies are considering the possibility of a complete closure of the Strait of Hormuz and the Bab-el-Mandeb Strait. Both routes are critical for global oil trade, so any restrictions could cause a new surge in energy prices and increase global inflationary pressure.