Oil prices have surged to their highest level in a month, with Brent crude nearing $85 a barrel, as renewed hostilities between the United States and Iran entered their third consecutive day. The escalating conflict has significantly dampened hopes for a return to stability in the vital Strait of Hormuz shipping lane.

Brent crude, the primary international benchmark, rose 2 percent on Tuesday, building on a substantial 9.6 percent gain from the previous day. Brent futures for September delivery reached $84.91 a barrel as of 03:30 GMT, marking the highest point since June 15. This price surge follows a period of easing after Washington and Tehran signed a memorandum of understanding (MoU) for peace last month, during which Brent had risen approximately 17 percent from its price before the start of the US-led conflict on Iran in late February.

US Central Command announced on Monday that its forces had conducted strikes on Iran for a third consecutive day, aiming to degrade Tehran's capacity to threaten "innocent civilians and commercial shipping" in the Strait of Hormuz. In response, Iran's Islamic Revolutionary Guard Corps stated it attacked two oil supertankers within the strait and launched missile and drone strikes against US military assets in Kuwait and Bahrain.

Adding to market uncertainty, U.S. President Donald Trump declared on Monday that Washington would reinstate its blockade of Iranian ports and implement transit fees for vessels passing through the critical waterway, positioning the U.S. as its "guardian." Analysts suggest that the strategic petroleum reserve is diminishing, making the market vulnerable to sharp price increases until tensions de-escalate.

June Goh, a senior oil market analyst at Sparta Commodities in Singapore, commented on the situation, noting that "Crude oil is fast losing its strategic petroleum reserve buffer, and a violent repricing up cannot be discounted until the market sees toned-down rhetoric from both parties." The U.S. government's emergency oil stockpile has been utilized to manage supply constraints.

Following a recent uptick amid expectations of a lasting peace deal between Washington and Tehran, maritime traffic through the Strait of Hormuz has seen a dramatic decline due to the heightened threat to commercial shipping. According to the ship-tracking platform MarineTraffic, 57 transits were recorded between Friday and Sunday, representing a more than 50 percent decrease compared to the preceding week. Prior to the initial U.S. and Israeli strikes on Iran in late February, approximately 130 vessels transited the strait daily.

The reduction in traffic highlights the significant impact of the renewed conflict on global oil transit. The Strait of Hormuz is a crucial chokepoint, through which a significant portion of the world's oil supply passes. Any disruption or perceived threat in this region can have immediate and substantial consequences for global energy markets.

With ongoing military actions and pronouncements from both the U.S. and Iran, the outlook for secure passage through the Strait of Hormuz remains uncertain. Market participants are closely monitoring diplomatic efforts and military developments for signs of de-escalation, which would be necessary to stabilize oil prices and restore confidence in maritime trade routes.