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Global oil price gains 3% as US military strikes on Iran add to peace deal uncertainty

Tue, 26th May 2026 09:38

* Brent rises, WTI falls owning to settlement price mismatch

* US Secretary of ​State says negotiating ⁠a deal could 'take a few days'

* Some oil, LNG ​tankers have passed through strait in recent days, shipping data show (Updates prices, adds analyst quotes)

LONDON, May 26 (Reuters) - Brent crude oil rose ​3% ‌on Tuesday after the U.S. military carried out strikes in Iran, adding to uncertainty on whether a deal will be imminently reached to end the ⁠war and open up shipping flows through the Strait of Hormuz.

U.S. Secretary ⁠of State Marco Rubio said on Tuesday ​that negotiating a deal with Iran could "take a few days," quashing hopes for an imminent end to the conflict a day after U.S. forces conducted what Washington called defensive strikes in southern Iran.

"We are still waiting for more details on a potential deal," said Giovanni ​Staunovo at ‌UBS. "Meanwhile we see renewed tensions in the Middle East, while flows through the Strait remain restricted."

Global benchmark Brent was up $3.04, or 3.2%, to $99.18 a barrel as of 0820 GMT, after settling 7% lower in the previous session. U.S. West Texas Intermediate was down $4.07, or 4.2%, from Friday's close, at $92.53. There was no WTI settlement on Monday due to the U.S. Memorial ​Day holiday.

TALKS IN DOHA ON POTENTIAL DEAL

"While differences between the parties have narrowed, any eventual peace deal would likely lead ‌only to a gradual reopening, meaning the current tight supply outlook could take months to normalize," said Ole Hansen at Saxo Bank.

Tehran has effectively halted nearly all non-Iranian shipping into ‌and out of the Gulf via the Strait of Hormuz since the war began, choking off about a fifth of global oil and liquefied natural gas flows.

The strikes happened as Iran's top negotiator and its foreign minister were in Doha for ​talks with Qatar's prime minister on a potential deal with the U.S. to end the three-month-old war.

Both Washington and Tehran said they have made progress ‌on a memorandum of understanding that would halt the war and give negotiators 60 days to reach a final deal.

Nikkei reported, citing a Middle East diplomatic source, that Iran would clear mines from the strait within a 30-day window under the agreement, after which ⁠vessels from ⁠all countries could navigate freely and safely, with Tehran also ending transit-fee collection.

Ship-tracking data ‌showed that three LNG tankers passed through the Strait in recent days, heading to Pakistan, China and India, along with a supertanker carrying Iraqi crude to China ​that had been stranded for ​nearly three months.

U.S. President Donald Trump on Monday repeated his demand that Iran hand ‌over its enriched uranium so it could be destroyed.

"It's a sharp reminder that the deal could still collapse at the 11th hour, much like the five previous attempts before it," said Tony Sycamore, a market analyst at IG. (Reporting by Alex Lawler; Additional reporting by Pooja Menon and Emily Chow in Singapore; Editing by David Holmes)

Commodities Oil & Gas Government & Politics

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