Oil Prices Soar on US-Iran Conflict Uncertainty
Global oil prices rose sharply on Tuesday after US military strikes in Iran added to uncertainty over a potential peace deal. The Brent crude price gained more than 2% as the conflict continues, with some oil and LNG tankers passing through the Strait of Hormuz in recent days.
The US Secretary of State said negotiating a deal could 'take a few days', quashing hopes for an immediate end to the war. Global benchmark Brent rose $2.43, or 2.5%, to $98.57 a barrel as of 1122 GMT, while U.S. West Texas Intermediate was down $4.36 from Friday's close at $92.24.
Analysts said any eventual peace deal would likely lead only to a gradual reopening, meaning the current tight supply outlook could take months to normalize. The strikes happened as Iran's top negotiator and its foreign minister were in Doha for talks with Qatar's prime minister on a potential deal with the US to end the three-month-old war.
The proposed agreement would halt the war and give negotiators 60 days to reach a final deal, according to reports. Under the agreement, Iran would clear mines from the Strait within a 30-day window, allowing vessels from all countries to navigate freely and safely.