Oil climbs as fading US-Iran peace hopes raise supply risks
Oil prices rose on Tuesday as a deal to end the Middle East war seemed further out of sight with Iran saying it will adopt a more offensive stance and the US ruling out extending a ceasefire agreement, heightening worries about energy supply. Iran will shift to a “fully offensive” military posture because efforts to negotiate a permanent end to the war with the US have stalled, a senior Iranian…
Oil prices surged on Tuesday as prospects for a Middle East ceasefire deal diminished, with Iran signaling a more aggressive military stance and the United States dismissing an extension to the recent ceasefire agreement. This development raised concerns over potential supply disruptions, driving Brent crude futures up 27 cents, or 0.3%, to $91.14, and U.S. West Texas Intermediate crude futures to $85.04, both marking their highest levels since July.
Market analyst Tim Waterer commented on the uncertainty surrounding the Strait of Hormuz, noting that shipping activity remains limited. Recent attacks on oil tankers and the ongoing military confrontations between Iran and the U.S. have exacerbated supply risks, with only five vessels crossing the Hormuz strait on Saturday, compared to 31 the previous weekend.
Although Oman and Iran were reportedly nearing an agreement on strait management, U.S. President Trump threatened military action against Iran, complicating the situation. Meanwhile, preliminary data suggested a decline in U.S. crude oil inventories last week.
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- Oil climbs as fading US-Iran peace hopes raise supply risks businesstimes.com.sg
- Oil climbs as fading US-Iran peace hopes raise supply risks channelnewsasia.com
