Oil Extends Gains As US-Iran Peace Deal Hopes Fade

(RTTNews) - Oil prices extended gains for a third consecutive session on Wednesday amid renewed uncertainty over U.S.-Iran negotiations aimed at ending the war and reopening the Strait of Hormuz, a critical waterway for the energy market globally. Brent crude futures for August delivery were up 2.2 percent at $98.15 a barrel after the U.S. military said it had thwarted Iranian missile attacks targeting Bahrain, Kuwait, and other locations in the region. WTI crude futures for July delivery surged 2.3 percent to $95.93.

As Hormuz fears spike, U.S. Secretary of State Marco Rubio said that Iran has mined "large segments" of the Strait of Hormuz and peace talks could take several months to conclude.

Rubio also told the Senate Foreign Relations Committee that Iran's supreme leader Mojtaba Khamenei is alive and increasingly active at some level.

Mixed signals from peace talks kept geopolitical uncertainty elevated. Iranian media had reported that talks with the U.S. were halted amid continued fighting in Lebanon.

It was said that Tehran was taking 'stern' approach in negotiations and hasn't been in contact with Washington for days.

A senior Iranian military officer said that a resumption of hostilities with the United States was inevitable.

However, U.S. President Donald Trump said reports of stalled talks were "fake news" and that the two sides have been "continuously" having conversations.

It was reported that U.S. forces defeated multiple ballistic missiles and drones on Tuesday, and conducted self-defense strikes on Qeshm Island in response to attempted attacks by Iran across the Middle East.

The ongoing war in the Middle East has dented economic growth prospects worldwide, with a more severe shock likely if no effective ceasefire is agreed before 2027, the OECD warned today.