Oil closes at three-week high as hopes of US-Iran peace deal fade
Both brent crude and US WTI crude contracts closed at their highest since Jul 24
Oil prices reached a three-week high on Tuesday (August 18) amid tensions between Iran and the United States. Brent crude and US WTI crude contracts closed at US$91.02 and US$84.94 per barrel, respectively, marking the highest levels since July 24. However, gains were limited as the Strait of Hormuz remained closed, and the US ruled out extending a ceasefire.
Iran has signaled a more aggressive stance, while the US has dismissed the possibility of a deal. Saudi Aramco has resumed oil loadings through the strait, and Chinese shipping companies have started collecting cargoes outside the Gulf. Nonetheless, vessel traffic through the strait remains low. Iran's top negotiator stated that the strait would stay closed until the US meets certain interim deal conditions, while US President Trump insisted that talks were neither taking place nor scheduled.
The market's reaction to the news was muted. Iran's aggressive military posture and the US threat to bomb Oman have contributed to upward pressure on oil prices, with economists predicting further pain in the near term.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
