Oil prices rebounded on Tuesday amid uncertainty over a preliminary US-Iran peace deal, which has yet to fully reopen the Strait of Hormuz or restore supply. Brent crude rose 0.3% to $83.42 per barrel, while US West Texas Intermediate climbed 0.3% to $81.12. The agreement, announced by US President Donald Trump, aims to end the four-month conflict that disrupted 14 million barrels per day of oil output. However, the memorandum's details remain undisclosed, and a permanent truce is still under negotiation.
Thailand Faces Sustained High Fuel Prices
Thai domestic fuel prices are expected to stay elevated until the fourth quarter, despite global crude easing. An Energy Ministry official cited lingering supply disruptions, foreign exchange impacts, and forward contracts pricing diesel at $100 per barrel for October. Refined oil shortages in Asia, exacerbated by Middle East attacks on infrastructure, are keeping prices high.
US Gasoline Drops Below $4 a Gallon
The national average US gasoline price fell below $4 per gallon for the first time since April, reflecting optimism over the US-Iran deal. However, analysts warn that oil market volatility will persist due to geopolitical risks, including Iran's continued control over the Strait of Hormuz and delayed supply recovery.
Analysts Warn of Lingering Risks
Experts predict oil prices will hover around $90 per barrel into the third quarter, as global inventories remain depleted. Daniel Hynes of ANZ cautioned that shipping through the Strait of Hormuz may not return to pre-conflict levels for months, citing ongoing risks like mines and stranded vessels. Westpac noted that uncertainty will persist until the deal's specifics are finalized.