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Oil rises as Trump signals no rush to end Iran war
- Oil climbed for a third straight day, with WTI topping $85 and Brent settling near $91, as the U.S.-Iran conflict neared six months.
bloomberg+1 - Trump told Fox News he has no timeline for a deal, while Energy Secretary Wright said the U.S. is "playing the long game."
theedgemarkets+1 - Gulf producers are adapting, with Saudi Arabia now offering oil cargoes routed outside the Strait of Hormuz to bypass disruptions.
theedgemarkets
Oil advanced for a third consecutive day on Monday as prospects for a near-term resolution of the US-Iran conflict receded, with President Donald Trump signaling he has no interest in extending an expiring agreement with Tehran.
West Texas Intermediate rose above $85 a barrel after closing 2.6% higher, while Brent settled just below $91, according to Bloomberg. The memorandum of understanding between the two sides, signed in June, technically expired on Monday.bloomberg+1
Washington Signals Patience
Trump said in a phone interview with Fox News that a US naval blockade on Iranian ports is putting pressure on the country and that he has no timeline for resolving the conflict. Other administration officials echoed the stance. Energy Secretary Chris Wright said in an interview that the US was "playing the long game" with the Islamic Republic, while envoy Jared Kushner said Trump would be "patient" on a deal.theedgemarkets+1
The two sides remain far apart on a host of issues, including the Strait of Hormuz, the critical chokepoint through which much of the world's oil transits. Crude has rallied almost 50% this year as the conflict, now approaching the end of its sixth month, has impeded energy flows from the Middle East.theedgemarkets
Gulf Producers Adapt
Still, Persian Gulf producers appear to be increasingly adept at moving oil through alternative routes. Saudi Arabia is now offering cargoes from outside the Strait of Hormuz, a sign the kingdom may be following the United Arab Emirates in finding ways to get its barrels to market despite the disruption.theedgemarkets
Broader Market Ripples
The conflict's escalation weighed on risk sentiment elsewhere. European stocks slipped as US-Iran peace hopes faded, while gold extended a two-week advance, trading around $4,425 an ounce as the weakening US dollar and easing expectations for further Federal Reserve rate hikes boosted demand for the metal. Swaps are no longer fully pricing in another US interest rate increase before the end of 2026, as they were just a week ago.businesstimes
The minutes of the Fed's July policy meeting, due for release on Wednesday, are expected to provide additional clarity on the central bank's rate considerations.businesstimes
Sources (5)
- 1 Oil Gains as the US Signals No Rush to End Conflict With Iran www.bloomberg.com
- 2 Oil gains as the US signals no rush to end conflict with Iran www.theedgemarkets.com
- 3 Gold advances as US dollar pushes lower on easing Fed hike bets www.businesstimes.com.sg
- 4 Oil gains as the US signals no rush to end conflict with Iran sg.finance.yahoo.com
- 5 European stocks slip as US-Iran peace hopes fade www.businesspost.ie
