Oil prices edged up to a three-week high, driven by the persistent standoff between the United States and Iran over control of the Strait of Hormuz. Brent crude fluctuated between gains and losses before settling near $91 per barrel.

US President Donald Trump stated that Washington has neither held nor scheduled any negotiations with Tehran, leaving the intensifying conflict in a state of uncertainty. The two sides remain deeply divided on a host of issues, including who should control the critical shipping chokepoint that is vital to global energy markets.

According to reports, Trump has threatened to bomb Oman if it impedes a US-imposed maritime blockade. Meanwhile, vessels transiting the Strait of Hormuz continue to face persistent security threats. The UK Maritime Trade Operations reported on Tuesday that a ship was struck by an unidentified projectile while exiting the strait, causing damage to the engine room and resulting in the death of a crew member.

Technical factors have also amplified the rally in oil prices. Data from Kpler's Bridgeton Research Group shows that trend-following commodity trading advisors have increased their net long positions in Brent, with bullish positioning rising to 55% from 46% on Monday. "Everyone is now navigating through a fog," said Bjarne Schieldrop, chief commodity analyst at SEB. "It's only natural to turn to technical signals and momentum trading."

West Texas Intermediate for September delivery rose 0.5% to settle at $84.94 per barrel, while Brent for October delivery gained 0.2% to close at $91.02 per barrel.