Oil Prices Rally Amid US-Iran Tensions

Oil prices rose more than 2% on Tuesday to over one-week highs as hopes for a US-Iran deal to end the war and reopen the Strait of Hormuz faded. President Donald Trump's demand that Iran pay compensation from Tehran complicated efforts.

Brent crude futures rose $1.92, or 2.19%, to $89.64 a barrel, while U.S. West Texas Intermediate crude futures were up $1.91, or 2.33%, to $84.04 a barrel, with both benchmarks trading at their highest levels since July 31.

Ole Hansen from Saxo Bank stated that 'there's no clear path to a solution and to a full reopening of the strait at this point in time' adding renewed upside pressure on prices.