Oil climbs 2%, extending gains on dimming U.S.-Iran peace hopes
XLE•Oil rises to highest since July 31
Oil prices rose more than 2% on Tuesday to their highest in more than a week as ongoing disruption to Middle East energy flows and fading hopes for a U.S.-Iran peace deal heightened concern over global oil supplies.
Brent crude futures LCOc1 rose $2.09, or 2.38%, to $89.81 a barrel by 0952 GMT. U.S. West Texas Intermediate crude futures CLc1 were up $2.15, or 2.62%, at $84.28. Both benchmarks were trading at their highest since July 31.
Both contracts had jumped more than 5% on Monday after U.S. President Donald Trump responded to Iran's conditions for a peace deal with his own demands that Iran pay compensation for people killed in wars, attacks and protests, which is likely to complicate efforts to reopen the Strait of Hormuz.
Later in the day he added that the U.S. had control of the strait and had swept the strategic oil waterway for Iranian mines.
