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

Crude prices climbed on Tuesday as the prospect of a deal to end the Middle East war receded, Dawn reported. Iran says it will take a more aggressive military stance because negotiations for a lasting peace with the United States have stalled, while Washington has rejected extending a temporary truce.

Brent futures rose 27 cents to $91.14 a barrel in early trading, following Monday's climb to a level last reached on July 30. West Texas Intermediate was 42 cents higher at $85.04 after touching $85.37 earlier, its best since July 31. Kpler's vessel tracking indicated that just five cargo ships crossed the Strait of Hormuz on Saturday and none on Sunday, down from 31 in the previous weekend. A preliminary Reuters poll also expected US crude stockpiles to have fallen last week.

Yemen's Houthi rebels said they fired missiles at a Saudi naval vessel and four accompanying ships in the Red Sea, citing military spokesman Yahya Saree. KCM chief market analyst Tim Waterer said the twin chokepoints at Hormuz and Bab el-Mandeb remain central to supply concerns. Iran is also close to a strait-management accord with Oman, yet Trump has threatened to bomb that Gulf partner, although media reports say he has opened back-channel talks with the Islamic Revolutionary Guard Corps.