Oil prices rise amid deadlock in U.S.-Iran talks — Reuters
Global oil prices continue to rise amid a lack of progress in negotiations between Washington and Tehran. The situation in the Strait of Hormuz, which remains unstable, is an additional source of tension.
Markets are reacting to the uncertainty and risks to raw material supplies, which is pushing prices higher. As long as diplomatic efforts fail to yield results, the upward price trend may persist.
This is reported by Reuters.
On Thursday, April 23, Brent crude futures rose by $1.26 to $103.17 per barrel. U.S. WTI gained $1.20 to reach $94.16.
Why oil prices are rising again
The day before, both indices closed more than $3 higher after U.S. gasoline and distillate inventories fell more than expected.
Analysts at ING (a major Dutch financial and banking holding company that conducts market analysis—Ed.) explain the situation simply: there is no movement toward resolving the conflict.
"The oil market is revising its expectations, and there is almost no progress in finding a solution in the Persian Gulf," the ING analysts’ note states.
According to them, hope for a resolution is fading as peace talks have reached an impasse.
What is happening in the Strait of Hormuz
Before the war began on February 28, about 20% of the world’s daily oil supplies passed through the strait. Transit is now restricted on both sides.
On Wednesday, April 22, Iran seized two ships in the waterway. At the same time, the U.S. military intercepted at least three tankers flying the Iranian flag in Asian waters—near India, Malaysia, and Sri Lanka—and is rerouting them.
U.S. President Donald Trump extended the ceasefire at the request of Pakistani mediators. However, he is not lifting the blockade on Iran’s maritime trade.
Iranian Parliament Speaker and chief negotiator Mohammad Baqer Qalibaf stated that a full ceasefire would only make sense after the U.S. lifts the blockade.
What analysts are saying
"Furthermore, Iran’s seizure of two ships attempting to pass through the Strait of Hormuz indicates that disruptions to shipping will continue," ING analysts note.
Also, global oil prices stabilizedafter Trump’s statements on a ceasefire — Reuters.
Energy prices do not reflect the full extent of the supply reduction, analysts note.
Oil prices fell sharply amid news about the U.S. and Iran.
