Brent Surges Amid Fading Hopes for US-Iran Deal and Record-Low Inventories
Brent crude oil prices continued their upward trend on Tuesday, reaching around $89 per barrel as hopes for a US-Iran agreement to fully reopen the Strait of Hormuz faded further.
The latest development in negotiations came when President Donald Trump introduced new demands on Tehran, requiring Iran to provide compensation for people it has killed in conflicts as part of future talks. This move complicates negotiations over the strategic waterway and adds uncertainty to the agreement's prospects.
Meanwhile, a spokesperson for Qatar’s foreign ministry mentioned that negotiations between Oman and Iran were at an advanced stage, offering some hope of progress toward an agreement. However, this optimism is tempered by Trump's new demands, which have cast doubt on the US-Iran deal's chances of being reached.
The oil prices' support also came from concerns over US inventories. The latest data showed that crude stocks held in the Strategic Petroleum Reserve had fallen to their lowest level in more than four decades.