Brent tops $88 as US, Iran near possible deal

Brent crude oil prices surged above $88 per barrel on Tuesday, fueled by optimism that the United States and Iran might soon strike a deal to ease tensions around the Strait of Hormuz, according to Reuters. The price of Brent crude jumped $0.95, or 1.08%, reaching $88.67 per barrel, while US West Texas Intermediate (WTI) rose $0.96, or 1.17%, to $83.09 per barrel, based on data from Oilprice.com.

This upward momentum occurred even as Pakistan claimed that both the US and Iran were nearing a "some sort" of agreement, and Qatar reported that talks between Oman and Iran on managing the Strait of Hormuz were nearing completion. These developments provided renewed hope that the two nations could break the impasse that had effectively blocked the crucial waterway, which carries roughly a fifth of global oil and liquefied natural gas supplies before the war.

Pakistan's Defence Minister Khawaja Asif told Bloomberg News that "things are shaping up again in favor of a peace arrangement or a deal," citing recent signals indicating the proximity to an agreement. Qatar's Foreign Ministry spokesperson also confirmed that discussions between Oman and Iran on Strait of Hormuz management were in an advanced stage.

However, Iran insisted that the waterway would remain closed until the US altered its stance and accepted Tehran's demands for ending the conflict. Iran's newly appointed Supreme National Security Council secretary, Mohsen Rezaei, stated that "as long as America does not change its behavior and does not accept Iran's conditions, the Strait of Hormuz will not be opened."

Rezaei emphasized that the US must end the war, pay Iran's frozen assets, and bring peace throughout the region, including in Lebanon and Gaza. The comments followed reports of fresh attacks on shipping in regional waters, highlighting the uncertainty surrounding the potential reopening of the key oil transit route. The Strait of Hormuz is a critical energy corridor, and its continued closure poses a significant threat to crude oil and liquefied natural gas supplies.

A prolonged disruption could maintain high oil prices due to concerns about supply shortages, whereas a credible agreement leading to the reopening could alleviate supply worries and exert downward pressure on crude prices. President Donald Trump, meanwhile, referred to Iran as "devious negotiators" while discussing his stance on the conflict.

"I'm sort of negotiating," Trump told Real America's Voice in a phone interview, adding, "They're very devious negotiators." Pakistan and Qatar have been prominent mediators in the ongoing conflict, which has claimed thousands of lives, primarily in Iran and Lebanon.