Oil Prices Surge on Fading Hopes for US-Iran Peace Deal

Oil prices have reached near three-week highs due to fading hopes for a US-Iran peace deal. The Brent crude futures price rose by 0.22% to $91.07 a barrel, while US West Texas Intermediate crude futures increased by 0.58% to $84.99 a barrel.

According to ING analysts, sentiment remained supported by President Donald Trump's decision not to extend the US-Iran peace agreement and continued security concerns in the Strait of Hormuz.

Iran has stated that it will keep the Strait of Hormuz closed until the US meets the conditions of the interim deal signed in June. Top Iranian negotiator Mohammad Baqer Qalibaf said, 'Iran will keep the Strait of Hormuz closed until the US meets the conditions of the interim deal signed in June.'

DBS Bank's head of energy research Suvro Sarkar warned that the lack of a deal will have an impact on oil price expectations for 4Q and even into 2027.