US-Iran Talks Stall, Oil Prices Surge Above $85

International oil prices have risen for a third consecutive day due to concerns over stalled US-Iran talks. West Texas Intermediate (WTI) surpassed $85 per barrel, its highest level since late July, according to Bloomberg.

The surge in oil prices is attributed to the fading prospects of a deal between the two nations. President Donald Trump stated he has no interest in extending the agreement reached with Iran in June, which officially expired on August 17. The two sides remain at odds over key issues, including control of the Strait of Hormuz, a critical chokepoint for global oil shipments.

US officials have emphasized that the dispute will not be resolved quickly. Energy Secretary Chris Wright noted that Washington is approaching the Iran issue from a long-term perspective. Envoy Jared Kushner indicated that Trump is in no rush to reach an agreement.

The ongoing supply concerns in the Middle East, which have driven international oil prices up about 50% this year, are also contributing to the current market dynamics. Persian Gulf producers are gradually increasing their capacity to move crude without relying on the Strait of Hormuz. Saudi Arabia has begun supplying crude cargoes from outside the strait, while the United Arab Emirates has taken similar steps.