OIL prices climbed on Tuesday as uncertainty over US-Iran negotiations continued to outweigh the resumption of Saudi crude flows through its East-West pipeline, while the ringgit weakened against the US dollar.
Brent crude rose towards US$106 a barrel, while the US dollar index climbed above 101.2 as investors assessed the impact of higher oil prices on inflation and the outlook for US monetary policy.
Iranian officials have reportedly cast doubt on the prospect of reaching an agreement to end hostilities in the Middle East and reopen the Strait of Hormuz before the US midterm elections in November.
Recent US-Iran talks in New York produced limited progress, with US President Donald Trump rejecting Tehran's latest proposal to reopen the strategic waterway.
However, Trump is reportedly considering sanctions relief for Iran and the unfreezing of funds if meaningful progress is made towards a nuclear agreement.
Meanwhile, Saudi Arabia has reportedly restored oil flows to about 3.5 million barrels per day following repairs to its East-West pipeline, providing an alternative export route that bypasses the Strait of Hormuz.
The oil market remains sensitive to developments surrounding the strategic waterway, through which a significant share of global oil supplies normally passes.
The rise in oil prices also supported the US dollar as investors assessed the potential inflationary impact and the possibility of tighter US monetary policy.
Several Federal Reserve officials last week cited resilient economic growth and a strong labour market as reasons further rate increases could be necessary.
Cleveland Fed President Beth Hammack also said resilient growth and concerns over government debt were contributing to higher long-term US Treasury yields.
Investors are now awaiting the Federal Reserve's preferred inflation gauge and key US employment data this week for further clues on the monetary policy outlook.
The US Dollar Index was quoted at 101.224 on Tuesday, up 0.25% from the previous session. It has gained 1.81% over the past four weeks and 3.39% over the past 12 months.
Against the ringgit, the US dollar was quoted at RM4.0850 on Tuesday, up 0.08% from the previous session.
The ringgit has weakened 1.48% against the US dollar over the past month but remains 2.93% stronger over the past 12 months. - September 29, 2026
