Oil prices settled at their highest level in more than three weeks on Tuesday as Iran signalled a tougher stance in its standoff with the United States and rejected accusations that it launched missiles at the UAE. Brent crude finished at $91.02 a barrel, up 0.17%, while WTI ended at $84.94, up 0.52%.

The latest move higher came even as individual headlines produced only modest intraday price swings. Traders are increasingly looking beyond the daily rhetoric and focusing on the physical reality that vessel transits through the Strait of Hormuz remain in the single digits, while some supply is being offset by covert flows from Saudi Arabia and Chinese buyers. That matters because the market is still trying to balance geopolitical risk against evidence that barrels continue to move, even if through less conventional routes.

Iran’s chief negotiator said the Strait of Hormuz will remain closed until Washington meets the conditions of the June interim deal. That followed remarks from a senior Iranian official, reported by Reuters, that the country would adopt a fully offensive military posture as hopes for a lasting settlement faded.

President Trump said there were no talks with Iran underway or scheduled, while also saying the strait remains open and the US naval blockade is in full force.

The UAE said earlier this week that it had halted all trade, commercial and financial dealings with Iran because of regional escalations. On Tuesday, Abu Dhabi went further, saying it had detected two ballistic missiles fired from Iranian territory against the country. Iran’s Foreign Ministry spokesperson rejected the allegation outright and warned against what officials described as false and baseless claims of staged attacks.

The exchange adds another layer to the tension between the two countries and suggests the UAE’s earlier economic move may have reflected direct military concerns as well as diplomatic pressure.

Elsewhere in the region, Yemen’s Houthis said they launched missiles at a Saudi warship and its escort vessels in the Red Sea. Separately, the UK maritime trade monitoring office reported that a vessel transiting out of Hormuz was struck by an unidentified projectile, damaging its engine room and causing a crew casualty.

Despite the escalation, physical supply has proved more resilient than the rhetoric suggests. Saudi Aramco has resumed loadings from inside the strait and is offering cargoes through ship-to-ship transfers off Fujairah. Two Chinese shipping companies have also begun collecting cargoes from outside the Gulf chokepoint, easing some supply concerns even as transits through the strait remain limited. The contrast between the headlines and the logistics is helping explain why prices can stay supported without a sharp breakout.

Analysts said the market has already absorbed months of similar headlines without a clear resolution, leaving prices supported for now while upside remains contained.

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