Oil climbed as indications that the Middle East conflict is long from settled dampened optimism that shipments through the Strait of Hormuz will expand to pre-war levels in the near future. Brent crude rose to settle near $91 a barrel, after gaining 6% last week. In the latest development, Energy Secretary Chris Wright said in an interview with Fox News that the US is playing the long game with Iran, implying Washington has no imminent plans for de-escalation. Wright's comments came just hours after Fox News reported that President Donald Trump threatened to bomb Oman if the country gets in the way of the American blockade of Iranian ships. Skirmishes have flared across the Middle East, including intense fighting in Lebanon as well as a spate of tanker attacks in Hormuz. Talks between Iran and the US appear to be at a standstill as a 60-day truce — already repeatedly violated — are also nearing a Monday expiration. Still, traders assessed mounting evidence that Gulf producers are pressing ahead with shuttling large volumes of crude out of the Persian Gulf, helping keep prices subdued. Hawkish rhetoric from US leaders this week follow comments by Treasury Secretary Scott Bessent that new economic curbs could be unveiled soon. Meanwhile, Tehran has been preparing for a potentially broader confrontation, The Wall Street Journal reported, citing Iranian and Arab officials. Trump has signaled that the administration intends to hit Iran's economy even harder, and said he didn't care whether the conflict ended before the November midterm elections. "More oil going through the Strait of Hormuz and the US moving towards economic sanctions instead of military pressure is lowering the geopolitical premium and capping the upside for oil," said Arne Lohmann Rasmussen, chief analyst at Global Risk Management. "On the other hand, the economic pressure strategy implies that the Strait of Hormuz can stay closed for months." Iran and Oman had appeared to be edging closer to a deal on how Hormuz should be managed. The US, however, wasn't party to the talks and is unlikely to agree to terms that don't restore free passage along the route that used to handle a fifth of the world's oil and liquefied natural gas flows each day. Elsewhere, Russia is facing fuel shortages after Ukraine resumed near-daily attacks on oil refineries. That's prompted gasoline rationing in at least two regions, as well as export curbs for refined products. Oil Prices Brent for October settlement was up 2.7% to settle at $90.87 a barrel in New York WTI for September delivery was 2.6% higher to settle at $84.50 a barrel
