Oil Prices Surge as Trump Throws Cold Water on Iran Peace Deal Hopes
Oil prices rose on Tuesday after US President Donald Trump suggested that a peace deal with Iran may not happen soon. In his address to the United Nations General Assembly, Trump mentioned that a deal could come after the US mid-term elections in early November.
This statement contradicted hopes for stability in the Middle East and progress in ending Russia's war in Ukraine, which had been building up before the UN meeting. Despite this, oil flows through the Strait of Hormuz have increased in recent days.
According to Phil Flynn, Senior Analyst at Price Futures Group, Saudi Arabia is taking action to ensure oil supplies. He noted that after a shutdown due to Houthi attacks on an East-West pipeline, Aramco loaded about 14 million barrels of crude onto seven Very Large Crude Carriers (VLCCs) inside the Gulf.
The increased oil movement through Hormuz averaged around 2.9 million barrels per day over the last six days, up from roughly 700,000 barrels a day in August.