Iran Peace Hopes Raise Supply Risks
Oil prices have risen as peace talks regarding the Middle East conflict have stalled, leading to increased concerns over energy supply. Iran has announced a shift to a more offensive military posture, further complicating the situation in the Strait of Hormuz.
Why it matters
The instability in the Strait of Hormuz threatens global energy security and could lead to sustained volatility in oil prices through 2027.
Oil prices rose on Tuesday as prospects receded for a deal to end the Middle East war, with Iran saying it would adopt a more offensive stance and the United States ruling out extension of a ceasefire deal, heightening worries about energy supply.
Iran will shift to a "fully offensive" military posture as efforts have stalled towards a permanent end to the war, a senior Iranian official told Reuters on Monday, as Washington ruled out extending their temporary ceasefire pact.
Brent crude futures climbed 62 cents, or 0.7%, to $91.49 a barrel by 0408 GMT, after rising on Monday to their highest since July 30.
US West Texas Intermediate crude futures were up 75 cents at $85.25 a barrel, but off an earlier session gain of more than 1% to reach $85.37, their highest since July 31.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in