Oil Prices Soar as US-Iran Negotiations Hit Impasse
Oil prices rose on Tuesday as negotiations between the United States and Iran over a peace deal hit an impasse, causing Brent crude futures to reach $88.09 per barrel.
U.S. President Donald Trump's demands for Iran to pay compensation for those killed in wars, attacks, and protests likely complicated efforts to reopen the Strait of Hormuz.
The market is now in a 'Mexican standoff' situation, according to Tony Sycamore, a market analyst at IG, with oil prices potentially stuck between $75 and $95 per barrel while waiting for one side to blink.
The latest uptick in fuel costs raises the stakes for the U.S. July consumer price report due on Wednesday, which is expected to show a monthly rise of 0.1% in the headline reading and 0.2% for the core measure.