- Oil prices rose for a third session as US-Iran conflict resolution prospects faded
- Brent crude surpassed $91 per barrel reaching its highest since late July
- US and Iran remain divided over Strait of Hormuz management and related issues
Oil prices rose for a third straight session on Tuesday as the prospect of a near-term resolution to the US-Iran war faded, with President Donald Trump signalling that Washington is in no hurry to extend an agreement with Tehran.
Brent crude rose above $91 a barrel, after settling at its highest level since late July, while West Texas Intermediate traded near $85. The memorandum referenced by Trump was signed in June and technically expired on Monday.
The two sides remain divided over several issues, including the Strait of Hormuz, a key route for Middle Eastern energy shipments. Iran is negotiating with Oman over the management of the waterway, while Washington is not part of those talks. Trump has also threatened military action against Oman if it interferes with the US blockade, according to Fox News.
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US Signals Prolonged Pressure On Iran
US officials have indicated that Washington is prepared for a prolonged conflict. Energy Secretary Chris Wright told Fox News that the US was playing the long game with Iran, while envoy Jared Kushner said Trump would remain patient in negotiations.
The US has also signalled that economic pressure could play a bigger role in forcing Tehran to concede. Treasury Secretary Scott Bessent said last week that new measures would be announced that would be unlike previous sanctions.
Oil has gained almost 50% this year as the conflict has disrupted energy flows from the Middle East. Persian Gulf producers, however, have been finding ways to move crude through Hormuz to international buyers.
Saudi Arabia is offering some cargoes from outside the chokepoint, following a strategy also adopted by the United Arab Emirates to move barrels to global markets.
For traders, the next major cue will come from US inventory data. Crude stockpiles unexpectedly increased last week to their highest level in about two months.
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