Brent crude oil price rose above $88 per barrel on Tuesday amid renewed hopes that the United States and Iran could reach an agreement that would ease the crisis around the Strait of Hormuz, Reuters reports.
Brent crude rose $0.95, or 1.08 per cent, to $88.67 per barrel, while United States West Texas Intermediate gained $0.96, or 1.17 per cent, to $83.09 per barrel, according to Oilprice.com data.
The rise came even as Pakistan said the US and Iran were close to reaching “some sort” of deal, while Qatar noted that discussions between Oman and Iran on managing the Strait of Hormuz were at an advanced stage.
The developments offered fresh hope that the two countries could break the stalemate that had effectively blocked the vital waterway, through which about a fifth of global oil and liquefied natural gas supplies flowed before the war.
Pakistan’s Defence Minister, Khawaja Asif, told Bloomberg News that “things are shaping up again in favour of a peace arrangement or a deal. The signals in the last two or three days are that we are close to some sort of an arrangement,” he said.
