US-Iran Stalemate Sends Oil Prices Soaring

Oil prices rose on Tuesday after negotiations between the US and Iran over a peace deal and the reopening of the Strait of Hormuz hit an impasse. Brent crude futures edged up to hit $88 per barrel, while US crude futures ticked up to $82.45.

Tony Sycamore, a market analyst at IG, described the situation as 'a bit of a Mexican standoff' and predicted that oil prices may remain in a range of $75 to $95 until an agreement is reached.

The latest uptick in fuel costs raises the stakes for the US July consumer price report due on Wednesday. Expectations are for a monthly rise of 0.1% in the headline reading and 0.2% for the core measure.