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Oil jumps as US-Iran ceasefire talks seen losing momentum
West Texas Intermediate rose about 1.7% to around $84 a barrel while about 6 million to 8 million barrels per day were reportedly moving through the Strait of Hormuz.
Oil prices rose after a report said US President Donald Trump told mediators he is not interested in returning to terms of a June ceasefire memorandum with Iran, adding uncertainty around the outlook for shipping volumes through the Strait of Hormuz. LiveMint Markets, citing reporting from the Wall Street Journal, said the stance has dashed hopes for progress toward a wider deal involving Iran-Oman revenue sharing for the waterway.
Brent was up about 2.1%, while West Texas Intermediate climbed roughly 1.7% to trade near $84 a barrel. Qatari officials also met with Iran’s foreign minister, Abbas Araghchi, to discuss an interim framework for Hormuz that would include establishing a temporary route in the strait, according to a statement from Iran’s foreign ministry shared on social media.
Despite the renewed engagement, Tehran has said that any navigation agreement would not amount to an immediate re-opening of the chokepoint that carries about a fifth of the world’s oil supplies. White House Press Secretary Karoline Leavitt said the US is not negotiating with Iran and that its naval blockade on Iranian ports would remain in effect.
Market commentary highlighted that there have been multiple false starts to ceasefires, keeping traders cautious. LiveMint Markets also pointed to evidence that crude continues to flow from the Persian Gulf, with estimates placing shipments through the Strait of Hormuz at about 6 million to 8 million barrels per day, plus satellite indications that Saudi Arabia may be ramping up oil loadings in the region amid threats from Yemen’s Houthi militants.
Latest closeWTI crude $81.58 ▼0.9%|Brent $86.32 ▼2.5%