Oil edged higher as traders weighed Middle East supply risks, with a critical Saudi Arabian pipeline still offline after an attack. West Texas Intermediate rose toward $102 a barrel after adding more than 1% on Monday, while Brent closed above $105. Saudi Arabia’s East-West pipeline — a vital workaround for Strait of Hormuz flows — was shut last week, with Saudi Aramco yet to say how long the disruption will last. Still, Riyadh is now trying to raise Hormuz shipments, according to a person familiar with the matter.

A supertanker attempting to pass through a restricted zone in the southern Strait of Hormuz exploded after striking mines, the semi-official Fars news agency reported, citing an Islamic Revolutionary Guard Corps Navy statement. US Central Command said in a post that the claim was false. On the diplomatic front, Tehran said there would be no talks with Washington until its conditions were met, according to Mohsen Rezaee, secretary of Iran’s Supreme National Security Council, in a post on X. That followed comments from US President Donald Trump, who flagged potential progress on the war.

“Crude is caught between physical realities that continue to point to lost supply and rhetoric pointing toward potential de-escalation,” said Rebecca Babin, senior energy trader at CIBC Private Wealth Group. “Ultimately, the market will put more weight on barrels and infrastructure than on rhetoric.”

Crude has rallied almost 80% this year as the US-Iran conflict has spread across the energy-rich Middle East, curbing exports. The upheaval — together with the fallout from the Russia-Ukraine war — has boosted inflationary pressures, helping the US 10-year Treasury yield to top 5% for the first time since 2023.