Oil Prices Rise as Hopes for US-Iran Peace Deal Fizzle
Oil prices rose on Tuesday, marking their third straight day of gains, as hopes for a US-Iran peace deal faded. Brent crude futures increased by $0.36 or 0.4% to $91.23 per barrel, while US West Texas Intermediate crude futures rose by $0.56 or 0.66% to $85.06 per barrel.
The escalation of tensions between the two countries has led to concerns that the conflict may extend, threatening oil tanker traffic through the strategic Strait of Hormuz. Iranian top negotiator Mohammad Baqer Qalibaf said Tehran would keep the strait closed until Washington meets the conditions of the interim deal signed in June.
US President Trump stated that talks between Washington and Tehran were not taking place, despite Iran's claims to be shifting to a 'fully offensive' military posture. Analysts expect oil prices to remain under pressure due to the lack of progress in peace talks.