2 weeks ago
Brent crude crosses $90 as US-Iran conflict prolongs
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.
Brent crude futures rose 27 cents to $91.14 a barrel, and WTI gained 42 cents to $85.04, marking a third straight day of gains.
The June US-Iran memorandum expired on Monday without a deal, and President Trump signaled no interest in extending the timeline.
US officials said Washington is in no rush, with Energy Secretary Chris Wright citing a 'long game' and envoy Jared Kushner saying Trump would be 'patient on a deal.'
Iran cautioned that any deal would not mean the immediate reopening of the Strait of Hormuz and is in talks with Oman over managing the waterway.
Gulf producers including Saudi Arabia are offering cargoes from outside the Strait, while traders await new US sanctions expected this week.
- Who
- US President Donald Trump, Energy Secretary Chris Wright, envoy Jared Kushner, Iran, and Gulf producers including Saudi Arabia and the UAE
- What
- Crude oil prices rose for a third straight day, with Brent above $91 and WTI above $85, as the US-Iran conflict continued without a near-term resolution
- Where
- Global oil markets, with the Strait of Hormuz as the key shipping chokepoint
- When
- Monday, August 17, per one report; another report cites Tuesday's session
- Why
- The June US-Iran memorandum expired without a deal and the US signaled no extension, keeping supply disruption concerns elevated
US position
Iran position
Deal timeline
US position
The US is in no rush, playing the 'long game' with Iran; Trump signaled no interest in extending the June memorandum timeline.
Iran position
Iran says intense talks continue with no near-term resolution in sight.
Strait of Hormuz
US position
The US has threatened a blockade and, per Fox News, threatened to bomb Oman if it interferes with the blockade.
Iran position
Iran is in talks with Oman over managing the waterway and cautions that any deal would not mean the immediate reopening of the Strait.
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.”
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