Oil Prices Surge on Fading US-Iran Peace Hopes
Oil prices rose to near three-week highs on Tuesday as hopes for a US-Iran peace deal faded, heightening concerns about prolonged energy supply disruptions.
The Brent crude futures climbed 7 cents to $90.94 a barrel by 1031 GMT, while US West Texas Intermediate crude futures were up 53 cents at $85.03 a barrel.
ING analysts attributed the sentiment support to 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, which Trump had previously labelled 'over'. Iran is also shifting to a 'fully offensive' military posture as efforts towards a permanent end to the war have stalled.