Brent oil price rises after US military strikes against Iran

Brent oil prices rose this Tuesday (26), after the United States military carried out attacks in Iran, increasing uncertainty about the imminence of an agreement to end the war and open the flow of ships through the Strait of Hormuz.

US Secretary of State Marco Rubio said on Tuesday that negotiating a deal with Iran could "take a few days", dashing hopes of an imminent end to the conflict, a day after US forces carried out what Washington called defensive strikes in southern Iran.

By 11:30 a.m., Brent crude was up about 4% to $96 per barrel, after falling nearly 7% in the previous session.

At the same time, WTI (West Texas Intermediate), a reference in the American market, fell 2.7%, to US$ 94. On Monday there was no liquidation of WTI due to the US Memorial Day holiday.

"We are still waiting for more details on a possible agreement," said Giovanni Staunovo of UBS.

"Meanwhile, we see renewed tensions in the Middle East, while cross-strait flows remain restricted."

Negotiations in Doha on possible deal
"While differences between the parties have narrowed, any eventual peace agreement would likely only lead to a gradual reopening, meaning the current outlook of tight supply could take months to normalize," said Saxo Bank's Ole Hansen.

Since the start of the war, Tehran has effectively shut down almost all non-Iranian shipping entering and leaving the Persian Gulf through the Strait of Hormuz, blocking about a fifth of global oil and liquefied natural gas flows.

The attacks took place when Iran's chief negotiator and its foreign minister were in Doha to talk to Qatar's prime minister about a possible deal with the US to end the three-month war.

Both Washington and Tehran said they had made progress on a memorandum of understanding that would halt the war and give negotiators 60 days to reach a final agreement.

*With information from Reuters

Source: CNN