Brent Crude Nears $90 as Strait of Hormuz Talks Hit Impasse

Oil prices extended sharp gains on Tuesday as negotiations to reopen the Strait of Hormuz stalled, with Brent crude approaching $90 per barrel and WTI surging roughly 6% and targeting resistance near $84.75. The breakdown in U.S.-Iran talks dashed hopes for a quick resolution to the waterway closure, a critical chokepoint for global crude flows. Brent had fallen more than 7% last week after signals from Washington suggested an agreement with Tehran was near, making this rebound a significant reversal.

Analysts warned that oil prices remain below recent peaks despite the fading deal prospects, a disconnect they cautioned may not hold. Rising oil prices rippled across markets: Treasury yields climbed, European energy stocks led equities higher, and the U.S. Dollar Index gained to near 99.90.

Stock futures were broadly flat as the yield surge offset equity gains. In Asia, Chinese mainland shares were mixed and Hong Kong edged lower as investors reassessed the conflict's trajectory. Separately, traders trimmed bets on aggressive Federal Reserve tightening following weakness in U.S. labor market data, with attention now turning to Wednesday's U.S.

CPI release as the next major catalyst.