Oil surges above $84 as Middle East ceasefire hopes fade

Crude oil futures surged above $84 a barrel on Tuesday as hopes for an extension of the US-Iran ceasefire faded, heightening concerns over Middle Eastern supply disruptions. The memorandum of understanding to finalise a peace agreement between the US and Iran, signed on June 17, expired on August 17, further raising concerns over a potential escalation and disruption to energy supplies. WTI rose nearly 0.5% to $84.11, while Brent gained 0.2% to $91.06 after touching its highest level since July 30. Oil prices have climbed nearly 50% this year amid prolonged regional tensions, although Gulf producers are increasingly finding ways to maintain flows through the Strait of Hormuz. MCX August crude futures rose nearly 0.9% to ₹8,136 per barrel.

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