Crude climbs after US reportedly raises Iran peace deal demands

TOKYO, Japan (AFP) — Crude prices advanced when trading resumed today, after weekend reporting indicated that the United States had taken a firmer line with Iran in efforts to bring the Middle East war to a close.

The US benchmark, West Texas Intermediate, rose 2.5 per cent to US$89.60 per barrel. Brent North Sea crude for August delivery was quoted near US$93.16 a barrel, roughly 2.2 per cent above Friday's closing level.

The rebound came after oil fell by more than 11 per cent last week, as traders looked to the possibility that a near-term peace accord could allow the Strait of Hormuz to reopen. The waterway carries a major share of the world's oil supply.

But The New York Times and other US outlets reported over the weekend that US President Donald Trump had returned a revised draft of a possible memorandum of understanding to Tehran, adding several tougher negotiating terms.