Oil Rises As Hope For Iran Deal Continue To Fizzle

Oil rose again on Tuesday as hopes for a deal to end the war in Iran continue to fizzle and reports about President Donald Trump considering resuming military operations.

Concretely, Brent crude, the international benchmark, rose by more than 3.5% at 10:10 a.m. ET, clocking in at $107.89. West Texas Intermediate, the U.S. benchmark, again rose above $100, climbing 3.62% at the same time.

The development comes after Trump met with his national security on Monday to discuss the path forward in the war in Iran as negotiations continue to be deadlocked.

Axios detailed that Trump wants to reach a deal to end the war, but the gap between the U.S. and Iran’s demands may not make it possible.

Citing two U.S. officials, the outlet said the president is considering military action as a way to increase pressure on the regime and close positions. “He will tune them up a bit,” one of them said.

Trump said on Monday that negotiations are in “life support” after the regime’s “unbelievably weak” response to Washington’s proposal.

Speaking to reporters at the Oval Office, Trump said Iranian leaders had agreed to hand over the country’s enriched uranium but then backtracked.

“Two days ago, they said, ‘You’re going to have to take it,'” Trump said. “But they changed their mind because they didn’t put it in the paper.”

The president went on to reject claims that he doesn’t have a clear plan to end the war. “It’s a very simple plan: Iran cannot have a nuclear weapon, and they won’t have a nuclear weapon,” Trump said, calling it “the best plan ever.”

One of the alternatives being considered is resuming “Project Freedom,” the operation allowing the passage of vessels through the Strait of Hormuz despite Iran’s blockade. Trump suspended it last week ahead of Iran’s response.

Inflation continued to rise in the U.S. in April, largely a result of increased gas prices. The figure surged to 3.8%, the highest level in almost three years, and was in line with economists’ expectations. Prices rose by 0.6% compared to the previous month.

Core inflation, which excludes volatile components like food and energy, rose by 0.4%, the Bureau of Labor Statistics said. That figure was higher than what was expected by economists surveyed on the matter.