Oil prices advanced for a third consecutive session following threats from President Donald Trump of additional strikes against Iran, coming just hours after the United States reinstated its blockade on the Islamic Republic's maritime traffic through the Strait of Hormuz.

West Texas Intermediate crude traded near $80 per barrel, after rising 11% over the first two trading days of the week. Brent crude settled close to $85 on Tuesday. In a Fox News interview, Trump stated that military actions against Iran would persist, indicating the U.S. could target power facilities and bridges next week if Tehran does not engage in negotiations.

The U.S. blockade resumed at 4 p.m. Washington time, one hour after American forces conducted new strikes on Iranian targets designed to weaken the country's capacity to attack commercial vessels in the strait. In a separate development on Tuesday, Trump retreated from a plan announced the previous day to impose a 20% tariff on cargo transiting the critical waterway.

This policy reversal was a positive signal for shipping companies unsettled by the breakdown of the U.S.-Iran ceasefire and the potential for further turmoil at the world's most vital energy transit point, which typically handles about one-fifth of global seaborne crude oil and liquefied natural gas. The situation also highlights the difficult position Trump faces as hostilities with Iran intensify and Tehran shows no sign of relaxing its control over the strait, contributing to upward pressure on oil prices.

"The uncertainty level is extremely high," commented Scott Shelton, an energy specialist at TP ICAP Group Plc. "Are we in a state of war? Can the U.S. secure the Strait of Hormuz to allow non-Iranian vessels to pass? Currently, nothing is getting through."

Oil has surged sharply in recent days amid renewed regional conflict, including assaults on oil tankers and incidents involving Gulf nations like Kuwait, which have brought maritime activity to a virtual halt. Prices have reached their highest level in approximately one month, recovering a portion of the roughly 30% decline seen in the second quarter, as the escalating tensions revive worries about supply from the energy-rich Middle East.

In the preceding month, producers in the Persian Gulf had started to market additional crude cargoes after an interim peace deal alleviated export concerns. The United Arab Emirates, in particular, achieved significant success in moving oil by employing shuttle tankers operating "dark," or with their tracking transponders switched off.

In a separate expansion of the conflict, the Iran-aligned Houthi group in Yemen launched ballistic missiles and drones at Saudi Arabia, marking the first major escalation between the parties since they agreed to a ceasefire in 2022.

In other market news, data from an industry-supported group indicated U.S. crude inventories decreased by 600,000 barrels last week. This would represent the 11th drawdown in 12 weeks if confirmed by official government statistics due on Wednesday.