Oil Prices Rise as U.S. and Iran Discuss Deal to Suspend Gulf Attacks

Oil prices edged higher on Monday as traders assessed the state of an uneasy cease-fire in the Persian Gulf.An American official said the United States and Iran had agreed to halt attacks in the Strait of Hormuz, raising hopes that the hostilities of recent days might not escalate into a full resumption of war.A U.S.

official, who spoke on the condition of anonymity to discuss ongoing negotiations, said the United States and Iran had agreed to allow commercial vessels to transit the strategic waterway while continuing talks on the existing memorandum of understanding.Iran has yet to confirm the latest agreement.The cease-fire had appeared to be on shaky ground after an Iranian drone strike on a cargo ship on Thursday.

The United States responded a day later by targeting Iranian air-defense sites and other military infrastructure.In turn, Iran’s Revolutionary Guards said they had launched missiles and drones over the weekend at a U.S.

naval base in Bahrain and an air base in Kuwait.The number of ships navigating the strait dropped steadily through the weekend.U.S.and Iranian officials are expected to hold talks on Tuesday in Qatar, according to a social media post by President Trump.Oil creeps higher.The price of Brent crude, the global benchmark for oil, ticked up almost 1 percent on Monday to more than $73 a barrel for September delivery, the most actively traded contract.

Prices remain near prewar levels, where they returned last week after a series of declines....