Shafaq News
Brent crude futures rose over 2% in Asian trade on Tuesdayafter the U.S. military carried out strikes in Iran, keeping markets on edge asa deal to end the war and open up the Strait of Hormuz remained elusive.
Brent futures were up $1.98, or 2.1%, to $98.12 a barrel asof 0405 GMT, after settling 7% lower in the previous session.
U.S. West Texas Intermediate crude was at $91.79 a barrel,up slightly from Monday's last traded price but down $4.81, or 5%, fromFriday's close. There was no settlement on Monday due to the U.S. Memorial Dayholiday.
While both contracts fell during the overnight session onhopes of a peace deal, the U.S. strikes in southern Iran and Israeli attacks onHezbollah have boosted Brent pricesand widened the spread with WTI, said Michael McCarthy, CEO of online tradingplatform Moomoo Australia.
U.S. Secretary of State Marco Rubio said on Tuesday thatnegotiating a deal with Iran could "take a few days," quashing hopesfor an imminent end to the conflict a day after U.S. forces conducted whatWashington called defensive strikes in southern Iran.
Tehran has effectively halted nearly all non-Iranianshipping into and out of the Gulf via the Strait of Hormuz since the war began,choking off about a fifth of global oil and liquefied natural gas flows.
The strikes happened as Iran's top negotiator and itsforeign minister were in Doha for talks with Qatar's prime minister on apotential deal with the U.S. to end the three-month-old war.
Both Washington and Tehran said they have made progress on amemorandum of understanding that would halt the war and give negotiators 60days to reach a final deal.
Nikkei reported, citing a Middle East diplomatic source,that Iran would clear mines from the strait within a 30‑day windowunder the agreement, after which vessels from all countries could navigatefreely and safely, with Tehran also ending transitfee collection.
"Traders are betting heavily that a breakthrough willfinally free up the long-paralyzed tankers stuck in and around the Strait ofHormuz," said Tim Waterer, chief market analyst at KCM Trade.
Ship-tracking data showed that three liquefied natural gastankers passed through the strait inrecent days, heading to Pakistan, China and India, along with a supertankercarrying Iraqi crude to China that had been stranded for nearly three months.
U.S. President Donald Trump on Monday repeated his demandthat Iran hand over its enricheduranium so it could be destroyed.
"It's a sharp reminder that the deal could stillcollapse at the eleventh hour, much like the five previous attempts beforeit," said Tony Sycamore, a market analyst at IG.
(Reuters)
Only the headline is edited by Shafaq News Agency.