Oil climbs more than 1% as doubts over US-Iran deal lift market

WASHINGTON: Oil prices moved higher on Wednesday after US President Donald Trump said a memorandum of understanding with Iran had not been finalised, adding to market uncertainty over whether the conflict could flare up again.

By 1534 GMT, Brent crude futures were up 89 cents, or about 1.1%, at $79.85 a barrel, while US West Texas Intermediate gained 91 cents, or 1.2%, to $76.96. Earlier in the session, both benchmark contracts had fallen to their lowest levels since early March.

The market reaction followed remarks by Trump that the understanding with Iran was not yet complete and that he could restart a bombing campaign if he was dissatisfied or if Iran did not behave. The comments raised fresh concern about the durability of the ceasefire arrangement and the wider outlook for oil supplies.

At the same time, worries about too much supply next year kept a lid on stronger gains. Fawad Razaqzada, a market analyst, said lingering uncertainty around the US situation had helped prices recover after recent losses.