Oil extends gains as Iran peace talk progress stalls

Oil prices increased for the third consecutive day on pessimism as fresh fighting flared up in the West Asia region.

Brent increased towards $97 a barrel, while West Texas Intermediate was close to $95 a barrel after it added over 7% in the first two sessions this week.

Israel is continuing attacks on Lebanon, jeopardizing fragile, long-running negotiations between Washington and Tehran, while the Islamic Republic fired missiles at nearby countries.

Another round of talks between Israel and Lebanon is scheduled for Wednesday. President Donald Trump said he’s still optimistic the US can reach an interim peace deal with Tehran soon — disputing reports in Iranian state media that discussions with Washington had been suspended over the fighting in Lebanon.

The lack of clarity over the potential extension of the current ceasefire — and the future of flows through the Strait of Hormuz — has buffeted oil prices, which fell last month on optimism that a deal could be reached. The delay in a resolution is raising concerns that the world will need to tap crude inventories further as it waits for Persian Gulf exports to fully resume.

Meanwhile, fighting has escalated in the Middle East. Iran fired ballistic missiles at Kuwait and Bahrain — which broke apart en route or were intercepted — while US forces conducted strikes on the Islamic Republic’s Qeshm Island, US Central Command said in a post on X.

Trump wants Iran to put specific nuclear concessions in writing as part of a preliminary agreement to end the war, ABC News reported, citing people familiar with the matter. Tehran had earlier given verbal assurances that it would agree to certain terms related to their nuclear program, according to the report.

With inputs from Bloomberg