Oil prices at near three-week high as US-Iran peace hopes fade

According to The Express Tribune, oil prices edged higher for a third straight session on Tuesday as hopes of an agreement that would bring the Middle East conflict to a close receded. Brent crude futures gained 7 cents to $90.94 a barrel at 1031 GMT, a rise of 0.08 per cent, while US West Texas Intermediate added 53 cents to $85.03. Both benchmarks reached their highest levels since July 30 and July 31 respectively earlier in the session.

Iran said it would take a more offensive stance and will keep the Strait of Hormuz shut until Washington meets the terms of a June interim deal, according to comments by negotiator Mohammad Bagher Ghalibaf published by state media. President Donald Trump had already declined to extend the peace agreement and described the deal as over.

DBS Bank's head of energy research, Suvro Sarkar, said the absence of a deal would affect oil price expectations for 4Q and 2027. Some oil is still getting out of Hormuz, although crossings remain at single digits, and Saudi Aramco has restarted loadings from inside the strait.