Oil prices rise as fading hopes for peace increase supply risks
Uncertainty surrounding the deal between İran and the US is supporting prices. Oil prices rose for a third session on Tuesday, fueling concerns about energy supply, as hopes of ending the Middle East war diminished following Iran’s declaration of a more aggressive stance and the U.S. refusal to extend the ceasefire agreement. WTI crude futures reached their highest level since July 31.
An Iranian official said on Monday that Iran would adopt a “fully aggressive” military stance after Washington refused to extend the temporary ceasefire agreement, halting efforts to end the war permanently.
Brent crude futures rose 89 cents, or 1%, to $91.76 a barrel as of 06:41 GMT. WTI crude futures also rose $1.05 to $85.55 a barrel.
Brent extended its gains from Monday, reaching its highest level since July 30. WTI extended its gains from the previous session, reaching its highest level since July 31.
US-Iran relations have become increasingly shaky. Progress in peace talks and the resumption of oil tanker traffic through the strategic Strait of Hormuz has stalled, threatening to prolong the conflict that began with the US and Israeli attacks on Iran on February 28.
An agreement to reopen the Strait of Hormuz is still not in sight, and shipment figures remain very low.
Houthi militias in Yemen launched a missile attack on a Saudi military vessel and four escort ships in the Red Sea. Military spokesman Yahya Saree announced the attack on the Telegram messaging app.
The lack of any agreement will affect oil price expectations for the fourth quarter and even into 2027.
The fact that Iran is negotiating an agreement with Oman on the management of the Strait of Hormuz and has indicated that it is close to reaching an agreement is unsettling for the US. Trump responded to these talks with a threat to bomb the Gulf state, a longtime US security partner.
According to a preliminary poll, US crude oil inventories are expected to fall last week, along with product inventories.
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