FX.co ★ Oil Extends Gains as Peace Prospects Dim

Crude oil rose above $85 per barrel on Tuesday, extending its rally for a third straight session as the likelihood of a new US–Iran agreement diminished. President Donald Trump signaled he was not interested in prolonging the interim peace deal, weakening prospects for further negotiations. The memorandum of understanding, signed in June to provide a 60-day window for hashing out a longer-term accord, officially expired on Monday.

Separately, Iran and Oman are continuing talks on a framework to manage shipping through the Strait of Hormuz, though the United States is not participating. Washington is unlikely to endorse any arrangement that does not guarantee unrestricted transit through this strategically critical corridor. At the same time, Middle Eastern producers appear increasingly adept at discreetly moving oil through Hormuz to global buyers, while also channeling additional cargoes from outside the key chokepoint.