Top News

Business Desk- Crude Oil Price: Oil prices increased in early trading in Asian markets on Tuesday, when Trump rejected Iran’s proposal. The talks between America and Iran aimed at ending the conflict seemed weak. The response from Iran to America’s proposal clearly revealed differences, due to which concerns remained regarding the supply of oil.

Brent crude futures rose 30 cents, or 0.29 percent, at $104.51 a barrel, while U.S. West Texas Intermediate (WTI) rose 31 cents, or 0.32 percent, at $98.38 by 0002 GMT. On Monday, both the benchmarks had gained about 2.8 percent.

US President Donald Trump said that the ceasefire with Iran is “on life support”. He pointed to differences on many demands. Such as ending hostilities on all fronts, lifting the US naval blockade, resuming the sale of Iranian oil, and providing compensation for war damages.

Iran also claimed sovereignty over the Strait of Hormuz. About one-fifth of the world’s oil and liquefied natural gas (LNG) flows pass through this strait.

Tim Waterer, chief market analyst at KCM Trade, said in an email that unless talks between the US and Iran reach a conclusion and restrictions on oil movement through the Strait of Hormuz remain in place, oil prices will remain above the $100 level.

Saudi Aramco CEO Amin Nasser warned that any disruption to oil exports through the Strait of Hormuz could delay the return of market stability until 2027. Due to this, about 10 crore barrels of oil may be lost every week.

Meanwhile, in an attempt to stabilize the oil market, the Trump administration announced a plan on Monday. Under this plan, America will lend 53.3 million barrels of crude oil from its ‘Strategic Petroleum Reserve’ (SPR).

Data tracking the movement of ships has shown that a consignment of crude oil from the American SPR has left for Türkiye. This is the first delivery of its kind to this country located in the Mediterranean region.

Meanwhile, just days before the scheduled meeting between President Trump and China’s President Xi Jinping, Washington imposed sanctions on three individuals and nine companies. These companies also include companies based in Hong Kong, United Arab Emirates and Oman. They are accused of helping in supplying Iranian oil to China.

Additionally, the Wall Street Journal reported on Monday that the UAE has carried out military strikes against Iran, including an attack in early April that targeted a refinery on Iran’s Lavan island. The report also states that UAE has not publicly acknowledged these attacks.