Oil Prices Soar on Fading US-Iran Peace Hopes

Oil prices reached a near three-week high on Tuesday as hopes for a US-Iran peace deal faded.

The Brent crude futures price climbed 35 cents, or 0.39%, to $91.22 a barrel by 0827 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose 81 cents, or 0.96%, to $85.31 a barrel.

Analysts at ING pointed out that US President Donald Trump's decision not to extend the US-Iran peace agreement and continued security concerns in the Strait of Hormuz had supported sentiment.

Iran has indicated it will shift to a 'fully offensive' military posture as efforts towards a permanent end to the war have stalled, with Washington ruling out extending its temporary ceasefire pact.