Oil Extends Gains as Peace Prospects Dim

2026-08-17 23:31 By Jam Kaimo Samonte 1 min. read

Crude oil climbed above $85 per barrel on Tuesday, rising for a third consecutive session as prospects for a new agreement between the US and Iran weakened after President Donald Trump said he was not interested in extending the interim peace deal.

The memorandum of understanding signed in June, which was intended to give both sides 60 days to negotiate a longer-term peace agreement, officially expired on Monday.

Meanwhile, Iran and Oman continue to negotiate an arrangement for managing shipping through the Strait of Hormuz, although the US is not involved in the talks.

Washington is unlikely to back any deal that fails to ensure unrestricted passage through the strategically vital shipping route.

At the same time, Middle Eastern producers appear to be becoming increasingly adept at covertly moving oil through Hormuz to global buyers while also supplying cargoes from outside the key chokepoint.



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