Oil near $110 as Iran peace talks stall, bets rise on $150 oil
Oil near $110 as Iran peace talks stall, bets rise on $150 oil
Oil edges toward $110 as U.S.-Iran peace talks stall, Hormuz tensions persist, fueling bets on a potential $150 crude spike.
Oil prices climbed toward $110 on Tuesday as hopes for a U.S.-Iran war resolution faded, keeping the Strait of Hormuz largely shut and restricting Middle East energy supplies. Brent crude for June rose 0.4% to $108.68 a barrel after a 2.8% gain in the previous session, marking seven straight sessions of gains. WTI crude for June gained 0.6% to $96.96, following a 2.1% rise in the prior session. The standoff between Washington and Tehran has left the waterway that channels a significant share of global oil flows constricted, with Iran insisting vessels obtain its approval before passage and the U.S. continuing its blockade of Iranian ports. The Strait of Hormuz normally carries around 20% of global oil and gas shipments, underscoring the potential impact on prices.
Trump’s rejection of an Iranian proposal has kept diplomatic progress uncertain, even as Iran presses for more favorable terms. Market watchers note that any disruption to Middle East output or shipping could push prices higher, particularly if geopolitical risk remains elevated. Goldman Sachs meanwhile raised its fourth-quarter oil price forecasts to $90 a barrel for Brent and $83 for WTI, citing upside risks from ongoing Middle East tensions and refined-product shortages. The broader takeaway is that the risk environment for oil remains tilted to the upside while relations between the U.S. and Iran remain unsettled, leaving traders watching for any diplomatic breakthroughs that could ease the supply squeeze.
What’s next? With Iran continuing to emphasize its control over Hormuz and the U.S. Navy maintaining vigilance, investors will be keenly listening for any new diplomatic moves or confrontations that could alter the path of prices in the near term.
