Brent Crude Surges Above $106 as US-Iran Tensions Escalate

Crude oil prices surged for the second consecutive day due to stalled US-Iran talks and robust demand, despite Saudi Arabia restoring some pipeline flows.

Brent crude broke above $106 per barrel, while West Texas Intermediate neared $94. The tensions and supply disruptions in the region are keeping a lid on oil prices.

Iran's officials have privately expressed skepticism about reaching an agreement with Washington to end hostilities before the US midterm elections in November, after President Donald Trump rejected a proposal to restore complete traffic through the Strait of Hormuz within seven days.

Saudi Arabia has reestablished around 50% of petroleum flows through its East-West pipeline, which is a crucial conduit bypassing the strait. The pipeline's flow rate has reached at least 3.5 million barrels per day.