Oil prices rise as U.S.-Iran agreement reaches deadline

Oil prices moved higher on Aug. 17 after Iran said it would not discuss extending its two-month memorandum of understanding with the United States. Signed June 17, the agreement established a period for continued talks covering bilateral commitments and commercial access through the Strait of Hormuz. U.S. West Texas Intermediate futures gained 0.76% to $83.03 a barrel, while Brent crude rose 0.92% to $89.33.

Iranian Foreign Ministry spokesperson Esmaeil Baqaei said the deadline had arrived without the agreement’s terms being fulfilled and ruled out an extension. A senior Iranian official added that Tehran could adopt a more active posture if diplomacy does not advance. Because the strait is a major route for global oil and liquefied natural gas, investors are tracking shipping activity and any progress between Washington and Tehran. For related context, Guardian Energy Partners has covered Iran’s conditions for reopening the Strait of Hormuz and recent Hormuz shipping patterns.

Source: CNBC
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