Commodities
Oil Prices Surge as US-Iran Peace Deal Hopes Fizzle
Oil prices continue to rise as hopes for a US-Iran peace deal fade. Brent crude has reached $89.63 per barrel, while West Texas Intermediate crude stands at $83.91 per barrel.
The sharp increase in oil prices is largely due to the uncertainty surrounding the Strait of Hormuz, a major waterway through which energy supplies and shipping pass. Iran has stated that the strait will remain closed unless the US changes its position and meets Tehran's conditions.
According to Reuters, only eight vessels were tracked through the strait on Tuesday, down from around 130-140 vessels per day before the conflict. The uncertainty has raised concerns among traders about how long disruptions to crude and other energy shipments could last.