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US-Iran standoff lifts oil toward 25% above early July lows
Brent rose about 5% over two days to around $88 a barrel as Strait of Hormuz reopening talks stalled.
Oil prices rose on Tuesday after negotiations between the United States and Iran over a peace deal hit an impasse and talks over reopening the Strait of Hormuz stalled, Reuters reported.
Brent crude futures gained 5% over the past two days and were last around $88 a barrel, the highest level since July 31 and nearly 25% above early July's near-four-month lows, according to Reuters.
The oil move also coincided with uncertainty about the global inflation outlook weighing on stocks, with IG analyst Tony Sycamore saying markets could enter a standoff where price action plays out in a prolonged wait for developments.
Looking ahead, Reuters noted that Wednesday's U.S. July consumer price report could influence expectations for the September Federal Reserve meeting, where money markets showed a 50/50 chance of a rate hike, as Capital Economics warned risks may be skewed toward a hotter inflation print.
Latest closeWTI crude $91.10 ▲3.2%|Brent $103.93 ▲3.7%