Oil Price Rises to $91/barrel as US-Iran Peace Talks Stall

Oil price rose on Tuesday to $91 per barrel as prospects of a deal to end the Middle East war receded.

Brent crude rose 1 percent to $91.76 a barrel, while US West Texas Intermediate (WTI) climbed 1 percent to $85.24 per barrel.

The spike comes after Iran said it would adopt a more offensive stance, while the US ruled out extending a ceasefire deal, heightening concerns over energy supplies.

Progress towards peace talks and the resumption of oil tanker traffic through the strategic Strait of Hormuz has stalled, raising concerns that the conflict, which began with US and Israeli attacks on Iran on February 28, could be prolonged.

On Tuesday, a projectile struck a vessel transiting out of the Strait of Hormuz in the latest attack to disrupt shipping through the waterway.

Tracking data showed that crossings have remained in the single digits despite a slight increase from the weekend.

Meanwhile, Iran has been negotiating with Oman on an agreement to manage the Strait of Hormuz and said the two countries were close to reaching a deal.

Donald Trump, US President, responded to the talks by threatening to bomb Oman, a longstanding US security partner.

For Nigeria, the combination of higher crude oil prices and increased production could boost government revenue and foreign exchange earnings.

Nigeria’s average daily crude oil production increased to 1.505 million barrels per day (bpd) in July, according to the Organization of Petroleum Exporting Countries (OPEC).