Oil Prices Surge Amid Fading Hopes for US-Iran Diplomatic Breakthrough

Crude oil prices surged above $91 per barrel on Tuesday as hopes of a diplomatic breakthrough in the US-Iran peace talks faded, sparking fresh concerns about global oil supplies.

The Brent crude benchmark rose by around one percent to $91.76 per barrel, while US West Texas Intermediate (WTI) crude climbed by one percent to $85.24 per barrel.

The recent increase marks the third consecutive trading session of oil price gains, with market analysts warning that the longer the dispute between the two nations continues, the greater the risk of sustained supply disruptions and higher crude prices.

A major concern for the oil market is the Strait of Hormuz, a key shipping route through which a significant share of global oil supplies normally passes. Iran has indicated that the strategic waterway will remain closed until the United States meets conditions linked to an earlier agreement.