Crude oil rose toward $85 per barrel on Tuesday, advancing for a third straight session as the odds of a new US–Iran agreement diminished after President Donald Trump said he was not interested in extending the interim peace deal. The memorandum of understanding signed in June—meant to give both sides 60 days to negotiate a longer-term peace agreement—officially expired on Monday.
At the same time, Iran and Oman are continuing talks on a framework to manage shipping through the Strait of Hormuz, though the United States is not participating. Washington is unlikely to support any arrangement that does not guarantee unfettered transit through this strategically crucial waterway. Meanwhile, Middle Eastern producers appear increasingly adept at discreetly moving crude through Hormuz to global buyers while also supplying shipments from outside the key chokepoint.
