Oil prices surged on Tuesday, August 4 after Iran reportedly denied any direct negotiations with US to end the Middle East conflict, raising geopolitical tensions and inflation risks.
Global benchmark brent crude price surged 2.8% to $86.15 per barrel, while West Texas Intemediate (WTI) traded nearly $82 per barrel, up 2%.
Iran's denial comes as US President Donald Trump pushed Tehran to reach a deal with Oman on the Strait of Hormuz as soon as Tuesday, or face devastating air strikes.
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“I want to give them every last chance before decapitation,” Trump told reporters on Monday. “You'll find out today or tomorrow. I mean, they're going to go quickly, one way or the other. It's not very complex.”
The oil prices has remained highly volatile in recent weeks after the collapse of a temporary ceasefire between the US and Iran reignited hostilities across the Middle East. Concerns over disruptions to shipping through Hormuz—which previously handled around 20% of global crude oil and LNG flows—have repeatedly pushed prices higher.
Apart from US-Iran conflict, traders are focusing on Russian and Kazakh crude supplies. Attacks on energy infrastructure around the Black Sea and Russia's oil export network was witnessed throughout July, raising concerns over additional supply disruptions even as some loadings resumed at the Caspian Pipeline Consortium terminal.
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