Oil Prices Soar as US-Iran Peace Deal Hopes Fizzle and Middle East Disruption Continues
Oil prices rose more than 2% on Tuesday to their highest in over a week as ongoing disruption to Middle East energy flows and fading hopes for a US-Iran peace deal heightened concern over global oil supplies.
Brent crude futures climbed $2.09, or 2.38%, to $89.81 a barrel by 0952 GMT, while U.S. West Texas Intermediate crude futures were up $2.15, or 2.62%, at $84.28, both trading at their highest since July 31.
The recent surge in oil prices was triggered by US President Donald Trump's response to Iran's conditions for a peace deal, where he demanded that Iran pay compensation for people killed in wars, attacks and protests, complicating efforts to reopen the Strait of Hormuz.
According to Saxo Bank's head of commodity strategy, Ole Hansen, 'There's no clear path to a solution and to a full reopening of the strait at this point in time, and that's adding renewed upside pressure on prices.'