2 weeks ago

Brent crude crosses $90 as US-Iran conflict prolongs

Brent crude crosses $90 as US-Iran conflict prolongs
Crude oil climbs for third straight day as US signals no immediate end to Iran war; Brent above $90 per barrel · livemint.com

Oil is a very important liquid that helps power cars, planes, and many other things we use every day.

A lot of the world's oil travels through a narrow waterway called the Strait of Hormuz.

The United States and Iran are having a big disagreement, and they have been trying to make a deal.

The time limit for that deal ended on Monday, and the two countries have not finished talking.

Because people are worried that oil might not get through, the price of oil went up.

On Monday, one kind of oil called Brent crude cost more than $91 for one barrel.

Another kind of oil, called West Texas Intermediate, cost more than $85 for one barrel.

Countries that sell oil, like Saudi Arabia, are looking for other ways to send their oil without going through the Strait of Hormuz.

The United States says it is not in a hurry to make a deal with Iran and is being patient.

People who buy and sell oil are watching closely to see what happens next.

Key facts

Brent crude price
$91.14 a barrel, up 27 cents
West Texas Intermediate price
$85.04 a barrel, up 42 cents
Price advance
Third consecutive day
US-Iran memorandum
Signed in June; expired Monday, August 17
US Energy Secretary
Chris Wright
US envoy
Jared Kushner
Strait of Hormuz
Iran in talks with Oman; any deal would not mean immediate reopening
US Treasury sanctions
New wave expected this week

Quotes

Energy Secretary Chris Wright

U.S. Energy Secretary

“US is playing the 'long game' with Iran”
CNBC TV 18

Jared Kushner

U.S. envoy to Iran

“Trump would be 'patient on a deal'”
CNBC TV 18

Kaynat Chainwala

AVP Commodity Research, Kotak Securities

“Brent extended gains today to $89.5 a barrel and WTI surged above $83, as prospects for a deal to ease US‑Iran tensions continued to fade, with fresh fighting in Lebanon and continued attacks on Hormuz‑transiting vessels keeping supply risk elevated.”
livemint.com

Sources

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