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

Business Recorder reported that oil prices edged higher for a third consecutive trading day on Tuesday, as hopes for a deal to end the Middle East war faded. Brent crude rose 7 cents, or 0.08 per cent, to $90.94 a barrel by 1031 GMT, while West Texas Intermediate gained 53 cents to $85.03. Both benchmarks reached their highest levels since late July earlier in the session.

Iran has said it will take a harder line, while Washington ruled out extending its ceasefire arrangement, which raised concerns about prolonged supply disruption through the Strait of Hormuz. Iranian negotiator Mohammad Baqer Qalibaf told state media that the strait would remain shut until the United States meets the terms of a June interim deal, which Trump has called over. Some oil is still getting through, but crossings remain in single digits, and Saudi Aramco has resumed loadings from inside the strait.

ING analysts linked market sentiment to Trump's decision not to extend the agreement and to ongoing security concerns around Hormuz. DBS Bank's head of energy research Suvro Sarkar said the absence of any deal could weigh on oil price expectations for the fourth quarter and 2027. SEB analyst Bjarne Schieldrop added that Iran could fully halt oil flows out of the strait whenever it chose, while Yemen's Houthis fired missiles at vessels in the Red Sea.