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As supply concerns increase due to dwindling chances for US-Iran peace, oil prices rise.
Oil prices rose on Tuesday as a deal to end the Middle East war seemed further out of sight with Iran saying it will adopt a more offensive stance and the U.S. ruling out extending a ceasefire agreement, heightening worries about energy supply.
Iran will shift to a “fully offensive” military posture because efforts to negotiate a permanent end to the war with the U.S. have stalled, a senior Iranian official told Reuters on Monday, as Washington ruled out extending a temporary ceasefire agreement.
Outward progress towards peace talks and a resumption of oil tanker traffic through the strategic Strait of Hormuz has ground to a halt, threatening to extend the conflict that the U.S. and Israel launched with attacks on Iran on February 28.
Brent crude futures climbed 27 cents, or 0.3%, to $91.14 by 0003 GMT, after rising to their highest since July 30 on Monday.
U.S. West Texas Intermediate crude futures were up 42 cents to $85.04 a barrel, after gaining more than 1% earlier in the session to $85.37, their highest since July 31.
“Oil has jumped to start the week as U.S.-Iran relations look increasingly shaky. A deal to reopen the Strait of Hormuz still does not appear to be in sight, and shipping numbers remain at a trickle,” said chief market analyst at KCM, Tim Waterer.
Following attacks on tankers, only five commodity vessels transited the Hormuz strait on Saturday, with none registered for Sunday, ship-tracking data from Kpler showed, versus 31 in the prior weekend.
Yemen’s Houthis attacked what they described as a Saudi military ship and four escort vessels in the Red Sea with missiles, according to the group’s military spokesperson Yahya Saree on Telegram.
“The dual chokehold on the Strait of Hormuz and the Bab el-Mandeb remains highly significant. These are not secondary concerns. They sit at the centre of the current supply-risk narrative,” KCM’s Waterer said.
Iran has separately been negotiating an agreement on managing the strait with Oman and says they are close to a deal. But Trump responded to those negotiations with a threat to bomb the Gulf state, a longstanding U.S. security partner.
Pre-war global oil demand sat at 103 million barrels per day, meaning the conflict erased a massive 25 days of global consumption.
In a glimmer of hope for diplomacy though, media reports said Trump had opened back-channel discussions with the Islamic Revolutionary Guard Corps.
U.S. crude oil stockpiles were expected to have fallen last week alongside product inventories, a preliminary Reuters poll showed on Monday.
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Pakistan to assume CAREC chairmanship in 2027, host 26th Ministerial Conference
Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal claimed that Pakistan would assume the presidency of the Central Asia Regional Economic Cooperation (CAREC) Program in 2027 and host the 26th CAREC Ministerial Conference,
Speaking at the 25th CAREC Ministerial Conference in Ulaanbaatar, Mongolia, Iqbal urged for CAREC transport routes to be turned into next-generation economic corridors by integrating infrastructure, logistics, digital connection, energy cooperation and climate resilience.
The 25th ministerial conference is taking place in Ulaanbaatar from September 29 to October 2.
“CAREC Corridors 5 and 6 offer Pakistan an opportunity to link Central Asian markets to the Arabian Sea and boost more economic activity along the routes,” Iqbal remarked.
“Rather than just allowing trucks to go through the corridors, the emphasis should be on allowing businesses to use the corridors reliably, competitively and profitably,” he said.
This will entail upgrading the CAREC highways, modernizing border facilities at Torkham and Chaman, enhancing rail freight capacity with the proposed ML-1 expansion and improving the connectivity with dry ports and seaports, added the minister.
Iqbal highlighted the need for a digital corridor across the CAREC region and said Pakistan’s Single Window system could be a basis for incremental digital integration with regional partners.
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Four people including a child rescued from chairlift in Kalam
Shau district of Kalam in Upper Swat: Four persons including two ladies and a child were successfully rescued from a chairlift, Rescue 1122 and other relevant department teams reached the area with rescue equipment as soon as they got the report and concluded the rescue operation.
Residents also joined the rescue operation, with heavy machinery from the Upper Swat Development Authority, cranes, police and the district government participating.
Assistant Commissioner Kalam was the supervisor of the rescue operation.
Earlier in December 2025, four persons including a mother and a child were stranded in a chairlift (doli) in the Bahrain area of Swat River.
“The family was crossing the river when the chairlift suddenly stopped in the middle of the stream due to a technical fault,” a representative of Rescue 1122 said.
Rescue teams arrived and evacuated all four people safely.
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Saudi Cabinet reviews progress on Makkah defence agreement with Pakistan, Türkiye
Under the chairmanship of Crown Prince Mohammed bin Salman, Saudi Arabia’s Cabinet evaluated the progress made in establishing the secretariat of the Makkah Joint Defense Agreement. Riyadh, Islamabad and Ankara are continuing their efforts to bolster defense cooperation. The Cabinet also reviewed developments in defense cooperation between Saudi Arabia, Pakistan and Turkey, as well as regional and international security issues.
The three countries signed the Makkah Joint Defense Agreement in August, pledging to work more closely together on collective security and defense. The pact specifies that an armed attack against any of the three is to be treated as an attack against all three.
The latest Cabinet discussions followed a meeting on Friday in Riyadh of the defense chiefs and chiefs of general staff of Saudi Arabia, Pakistan and Türkiye.
The military commanders examined dangers facing Saudi Arabia and discussed measures to enhance intelligence sharing, military coordination, and integration of defense capabilities.
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