Crude oil prices are again rising and back near $100 U.S. a barrel as fighting between the U.S. and Iran resumes and peace negotiations stall.
The two countries launched fresh strikes against each other on June 2 even as U.S. President Donald Trump insists that negotiations with Iran remain ongoing.
There are also reports that Iran is again firing missiles and drones at its neighbours in the Middle East, targeting energy infrastructure.
As a result, Brent crude oil, the international standard, is up 2% on June 3 and trading at $98.27 U.S. per barrel.
Iranian media reports say that communications with the U.S. have broken down and that it is no longer engaged in peace talks with American officials.
However, Trump and other U.S. officials continue to dispute Iran’s claims and the U.S. president continues to say that the Strait of Hormuz waterway will reopen soon.
Commodities analysts warn that the U.S.-Iran war is causing widespread disruptions across the Middle East’s oil and natural gas sector.
Analysts say the current situation has exports collapsing, production shut in, and repeated strikes on infrastructure are causing billions of dollars in damage.
The Strait of Hormuz near Iran is where 20% of the world’s crude oil is typically shipped. It has been closed since the U.S. and Israel attacked Iran on Feb. 28 of this year.
