Oil rises on delay in US-Iran peace deal

Despite Trump remarks, flows through Hormuz increase

HOUSTON:

Oil prices rose on Tuesday as traders worried about global supplies after US President Donald Trump told the United Nations General Assembly in a speech that a peace deal with Iran could come after the US mid-term elections, which are not until early November.

Trump also said that without a peace deal he could "annihilate" Iran. He was expected to meet with world leaders at the UN in New York this week, feeding hopes for stability in the Middle East and perhaps even progress in ending Russia's 4-1/2-year-old war in Ukraine.

The Brent crude futures November contract was at $99.94 a barrel at 1507 GMT. The WTI October contract, which was expiring on Tuesday, stood at $95.43 a barrel.

Trump's comments burst mounting hopes that a deal could come during this week's UN General Assembly meeting in New York. Feeding the optimism, flows through the Strait of Hormuz were seen increasing in recent days.

"Saudi Arabia is acting, not waiting," said Phil Flynn, Senior Analyst at Price Futures Group. "After Houthi hits on the East-West pipeline forced a shutdown of Yanbu loadings, Aramco loaded about 14 million barrels of crude onto seven VLCCs inside the Gulf. Satellite and tracker data showed Saudi oil moving through Hormuz averaging about 2.9 million barrels a day over the last six days, up from roughly 700,000 barrels a day in August."