Oil Prices Rise as Fading U.S.-Iran Peace Hopes Heighten Supply Risks

PUKMEDIA

Oil prices.

Oil prices rose on Tuesday as prospects receded for a deal to end the Middle ‌East war, with Iran saying it would adopt a more offensive stance and the United States ruling out extension of a ceasefire deal, heightening worries about energy supply.

Iran will shift to a "fully offensive" military posture as efforts have stalled towards a permanent end to the war, a senior Iranian official told Reuters on Monday, as Washington ruled out extending their temporary ceasefire pact.

According to Reuters, Brent crude futures climbed 62 cents, or 0.7%, to $91.49 a barrel by 0408 GMT, after ⁠rising on Monday to their highest since 30 July, while U.S. West Texas Intermediate crude futures were up 75 cents at $85.25 a barrel, but off an earlier session gain of more than 1% to reach $85.37, their highest since 31 July.

Outward progress on peace talks and resumption of oil tanker traffic through the strategic Strait of Hormuz has halted, threatening to extend the conflict the United States and Israel launched with attacks on Iran on 28 February.

A projectile struck a vessel transiting out of the Strait of Hormuz on Tuesday in the latest of the attacks that have kept crossings to the single digits, despite a slight rise from the weekend, tracking data showed.

Yemen's Houthis launched missiles in an attack on vessels they described as a Saudi military ship and four escorts in the Red Sea, their military spokesperson, ⁠Yahya Saree, said on the Telegram messaging app.

Iran has separately been negotiating with Oman an agreement on managing the Strait of Hormuz and says they are close to a deal. ⁠But Trump responded to those talks with a threat to bomb the Gulf state, a longstanding U.S. security partner.



PUKMEDIA