Oil prices rise as US-Iran Hormuz deal hopes fade

Oil prices rose Tuesday as hopes faded for a US-Iran agreement to reopen the Strait of Hormuz after a truce deadline expired a day earlier.

Around 0230 GMT, Brent North Sea crude was up 0.4% at $91.22 a barrel, while West Texas Intermediate was up 0.6% at $84.99. Both main crude contracts had gained more than 2% on Monday.

Stocks were mixed in Asia. Seoul rose more than 2% in early trading after a long weekend before paring gains, while Sydney, Wellington and Jakarta also advanced. Tokyo, Hong Kong, Shanghai, Singapore, Taipei and Manila fell.

Long-term US Treasury yields have climbed to their highest levels since June 2007, with traders still expecting inflation to stay high while crude remains around $90 a barrel.

US President Donald Trump said he would not extend a 60-day truce that was part of a June memorandum of understanding. Iran called the truce “irrelevant”, saying the United States had violated it early on.

Jared Kushner, Trump’s envoy and son-in-law, told Fox News that the two sides were having “very positive and active conversations”, but added that there was “not a lot of trust” between the United States and Iran.

Treasury Secretary Scott Bessent said last week that Washington could impose new measures against Tehran next week, threatening economic isolation “like the world has never seen before”.