Oil Prices Climb Amid Weakened Hopes for US-Iran Deal
Oil prices rose on Tuesday as hopes for a U.S.-Iran deal to end the war and reopen the Strait of Hormuz weakened. The international benchmark Brent climbed around 2% to $89.6 per barrel, while the U.S. benchmark WTI rose by a similar margin to $84.
The strengthening oil prices came despite lower expectations for a Federal Reserve rate hike, which has been weighing on the market in recent weeks. Gold, meanwhile, extended its gains above $4,400 amid the uncertainty, hitting $4,430 during early trading before giving back some ground.
Stocks showed limited gains across major markets in Asia, with Japan's Nikkei 225 rising more than 2% and South Korea's Kospi adding 0.7%. However, silver moved in the opposite direction to gold, falling more than 2% to $64.4 per ounce.
The deadlock over the Strait of Hormuz remains a major source of uncertainty for investors, with negotiations between the U.S. and Iran stalled despite some progress. U.S. President Donald Trump has left the door open to a possible major attack on Iran and argued that Tehran should pay compensation for the damage it has caused in the Middle East over the past 50 years.