Oil prices rose on Tuesday as lingering disagreements on several key issues, with a US-Iran ceasefire set to expire on Wednesday, fueled ongoing market skepticism over whether a new round of talks to finalize a peace agreement would take place. Market confidence in the imminent talks diminished following reports that US Vice President JD Vance had not departed for Islamabad to participate in the negotiations, pushing Brent crude to settle above $98 per barrel. The planned second round of talks in Pakistan had been viewed as a final opportunity to de-escalate tensions before the two-week ceasefire concludes, and also held the potential to clarify whether the Strait of Hormuz could soon reopen to oil tanker traffic. Geopolitical analyst Gregory Brew of Eurasia Group stated, "My sense is that they are negotiating before they formally negotiate. Both Iran and the US want a high degree of certainty about what a final deal would look like before committing to sending their respective delegations." Scott Shelton, an energy specialist at TP ICAP Group Plc, noted that a failure to extend the ceasefire "would put assets in the Persian Gulf at risk again." He added that this, combined with the strong performance of the expiring May WTI contract, signals that US supplies are tightening just as Middle Eastern crude flows could face renewed pressure. The May WTI contract, which expired Tuesday, settled at $92.13 per barrel. The June WTI crude futures contract increased by 2.6%, closing at $89.67 per barrel. June Brent crude futures rose 3.1%, to $98.48 per barrel.
Comments