Oil Prices Soar as Iran-US Peace Hopes Plummet
Oil prices have reached their highest level in nearly three weeks as hopes for a US-Iran peace deal fade. Brent crude futures rose to $91.07 a barrel, while US West Texas Intermediate crude futures increased to $84.99 a barrel.
The price surge is attributed to the lack of progress on peace talks and the resumption of security concerns in the Strait of Hormuz. Iranian officials have stated that they will maintain their current stance until the US meets the conditions of the interim deal signed in June.
According to DBS Bank's head of energy research, Suvro Sarkar, the lack of a deal will impact oil price expectations further out in 4Q and even in 2027. Saudi Aramco has resumed oil loadings from inside the Strait of Hormuz, but some oil is still escaping.