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Oil eases as Iran says diplomacy remains possible despite conflict

Crude prices dipped after an Iranian foreign ministry spokesperson said Tehran received mediator proposals, while Iran reiterated its position on the Strait of Hormuz as non-negotiable.

Reported · Written up by our desk · Energy

Oil prices eased somewhat after Iran signaled that diplomatic channels with the United States could remain open even as military strikes between the two sides continued. Forexlive reports that Iranian Foreign Ministry spokesperson Esmaeil Baghaei said Tehran would consider diplomacy based on its national interests and confirmed that mediators have stayed active in recent days despite the ceasefire collapse.

Baghaei said Iran has received proposals from mediators and exchanged messages with them. Forexlive added that Pakistan, Qatar and Oman continued efforts to facilitate contacts between Washington and Tehran to help prevent a wider regional conflict.

While the comments reduced near-term risk sentiment, the risk of escalation remains elevated. Forexlive reports Baghaei reiterated that Iran's sovereign rights over the Strait of Hormuz are non-negotiable, calling the strait dispute a key sticking point in the crisis.

Baghaei also announced that Iran's interior minister will visit Pakistan later today. Forexlive said the remarks lifted broader risk sentiment with crude oil falling a bit, but elevated escalation risks are expected to keep oil prices supported.

Latest closeWTI crude $79.00 ▼0.8%

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