US-Iran Tensions Send Oil Prices Surging Amid Fading Peace Hopes
Oil prices rose on Tuesday as hopes of a US-Iran peace deal faded. The conflict between the two nations has been ongoing since February 28, when the US and Israel launched attacks on Iran.
A senior Iranian official told Reuters that Tehran will shift to a 'fully offensive' military posture because efforts to negotiate a permanent end to the war with the US have stalled.
The US has ruled out extending a temporary ceasefire agreement, heightening worries about energy supply. Brent crude futures climbed 27 cents, or 0.3 per cent, to $91.14 by 0003 GMT, while U.S. West Texas Intermediate crude futures were up 42 cents to $85.04 a barrel.
KCM chief market analyst Tim Waterer said oil has jumped to start the week as US-Iran relations look increasingly shaky. Shipping numbers remain at a trickle, with only five commodity vessels transiting the Strait of Hormuz on Saturday, versus 31 in the prior weekend.