Oil prices turned higher during trading on Tuesday, July 21, as markets balanced reports of mediation efforts between America and Iran on one hand, and the exchange of new attacks between the two sides and the threat by the Houthis in Yemen to impose a naval blockade on Saudi Arabia on the other.
In trading, Brent crude futures rose by about 1.3% to $90.37 a barrel, while US crude futures climbed by 1.5% to $84.49 a barrel.
KCM Trade's chief market analyst, Tim Waterr, said in a note quoted by Reuters: The Houthis' threats to impose a naval blockade on Saudi Arabia are of great significance because they increase the risk of disruption to supplies from another major oil exporter.
On the other hand, a senior Iranian official told Reuters that Tehran had received a proposal from mediators for a 10-day ceasefire in an attempt to salvage a temporary agreement signed on June 17, which aims to pave the way for a permanent agreement to end the war that began on February 28.
