Oil Prices Soar as Iran Deal Hopes Fade, Brent Tops $91

Crude oil prices continued to rise on Tuesday as concerns over prolonged supply disruptions through the Strait of Hormuz fueled fears of a U.S.-Iran deal collapse. Brent futures surged above $91 a barrel, while WTI rose to its highest level since July 31 at $85.04.

The latest move followed a deterioration in U.S.-Iran diplomacy, with Iran adopting a more offensive military posture after negotiations stalled and Washington ruling out extending the temporary ceasefire.

Progress toward restoring normal tanker traffic through the Strait of Hormuz has also slowed. The International Energy Agency reported that Gulf oil production remained 8.3 million barrels per day below prewar levels in July, leading to an expected global market deficit of 1.8 million bpd in the third quarter.

WTI needs a sustained push above $85 to confirm another leg higher, while failure to maintain the recovery would bring the $80 area back into focus. The Energy Information Administration has raised its 2026 average price forecasts for Brent and WTI, citing prolonged Middle East production losses.