FX.co ★ Oil Rises as US-Iran Uncertainty Persists

Crude oil rose above $93 per barrel on Tuesday, extending its recent gains as persistent uncertainty over US-Iran negotiations outweighed the impact of resumed flows through Saudi Arabia’s East-West pipeline. Iranian officials have reportedly downplayed the likelihood of a deal to end hostilities in the Middle East and reopen the Strait of Hormuz before the US midterm elections in November. Recent talks between the US and Iran in New York yielded limited progress, with President Donald Trump rejecting Tehran’s latest proposal to reopen the strategic shipping lane. Even so, Trump is said to be weighing potential sanctions relief for Iran and the unfreezing of assets if there is meaningful movement toward a new nuclear agreement. At the same time, Saudi Arabia has reportedly restored oil flows to about 3.5 million barrels per day after repairing a key pipeline that offers an alternative export route bypassing Hormuz.