Hong Kong – Oil prices extended hefty gains Tuesday as hopes for a reopening of the Strait of Hormuz fade, fanning fresh inflation fears and ramping up bets on at least one US interest rate hike this year. “In the absence of any positive headlines on negotiations to reopen the strait, pressure on oil prices has been upward,” wrote Jason Wong at BNZ. And Stephen Innes, global strategist at Quintex Intel, said: “In effect, both sides are trying to weaponise the oil barrel without firing another shot. The prospect of oil prices remaining elevated for the time being has revived concerns over inflation and boosted the chances of interest rate increases. Shanghai, Wellington, Taipei and Manila all edged down but there were gains in Hong Kong, Sydney, Singapore and Seoul.