Oil climbs as fading US-Iran peace hopes raise supply risks

Business Recorder reported that oil prices extended their rise to a third day on Tuesday as hopes for a deal to end the Middle East war faded. Brent crude gained 89 cents, or 1%, to $91.76 a barrel by 0641 GMT, reaching its loftiest level since July 30. US West Texas Intermediate climbed $1.05 to $85.55, its highest since July 31.

A senior Iranian official told Reuters that Iran will adopt a fully offensive military stance because efforts toward a lasting settlement have stalled. Washington, for its part, has ruled out prolonging its temporary ceasefire arrangement. Progress in talks and the reopening of tanker traffic through the Strait of Hormuz have come to a halt, and a projectile hit a vessel leaving the strait on Tuesday, according to tracking data.

Yemen's Houthis claimed missiles were launched at a Saudi navy vessel and four escorts in the Red Sea, according to their military spokesperson. DBS Bank's head of energy research, Suvro Sarkar, said the lack of any agreement would weigh on oil price expectations for the fourth quarter and into 2027, and sees near-term crude staying between $80 and $100 a barrel. Iran is negotiating an agreement with Oman on managing the strait and says a deal is close, but Trump has threatened to bomb the Gulf state long considered a key American security partner.