-- Crude oil prices surged on Tuesday as stalled peace talks between the U.S. and Iran fueled market concerns about prolonged disruptions in supply flows through the Strait of Hormuz.
Brent crude at last look rose 2.8% to US$111.23/barrel and West Texas Intermediate crude climbed 3.1% to $99.31/barrel. U.S. President Donald Trump is not satisfied with Iran's latest proposal to end the war, leaving the conflict deadlocked, Reuters said in a Tuesday report, citing an unnamed U.S. official.
Iranian sources reported that it avoided addressing the nuclear program until hostilities cease and Gulf shipping disputes are resolved, the report said.
"With peace talks stalled and no clear path to reopening the Strait of Hormuz, traders are factoring in a prolonged disruption to a critical artery of global supply," Reuters quoted Rystad Energy analyst Jorge Leon as saying.
"Even in a best-case scenario, any US-Iran agreement is likely to be narrow and partial, leaving the Strait issue unresolved, which means the upside risks to prices remain," Leon added.