Oil prices stable as Iran conducts war games in Strait of Hormuz

Oil prices held steady Tuesday as Iran conducted war games in the Strait of Hormuz, a trade chokepoint that is vital for international crude supplies.

U.S. crude oil rose 53 cents, or 0.84%, to $63.42 per barrel by 8:45 a.m. ET. Global benchmark Brent was down 29 cents, or 0.42%, to $68.36.

Traffic through the strait was suspended for several hours Tuesday as the Islamic Revolution Guard Corps (IRCG) held naval exercises, according to Iran’s semi-official Tasnim news agency.

About one-third of all waterborne crude oil exports pass through the strait, according to data from consulting firm Kpler.

The military exercises come as tensions are high between the U.S. and Iran. President Donald Trump has threatened strikes on the Islamic Republic if it does not cut a deal over its nuclear program.

Iran and the U.S. held indirect talks in Geneva, Switzerland, on Tuesday, according to the state-run Islamic Republic News Agency.

The IRCG is prepared to close the Strait of Hormuz if ordered to do so, Rear Admiral Alireza Tangsiri said, according to Tansim news agency.