Oil Market Unsettles, Prices Surge on Demand, Supply Imbalance
Oil prices continue to search for direction on Tuesday as markets weigh expectations that planned US-Iran talks this week could boost supply against ongoing risks stemming from disruptions in the Strait of Hormuz.
International benchmark Brent crude traded at $94.54 per barrel, up slightly from the previous day’s close. US benchmark West Texas Intermediate rose to $86.30 per barrel amidst demand and supply imbalance.
Pakistani officials said, despite tensions in the Strait of Hormuz, an Iranian delegation would attend a second round of negotiations with the US in Islamabad.
However, Iran’s Parliament Speaker Mohammad Bagher Ghalibaf rejected the prospect of talks under pressure, pointing to the US naval blockade in the Strait of Hormuz and saying, “We do not accept negotiations under the shadow of threats.”
During a phone call, Iranian Foreign Minister Abbas Araghchi told his Pakistani counterpart Ishaq Dar that the ceasefire agreed with the US had been repeatedly violated and Washington’s threats were undermining the diplomatic process.
US President Donald Trump, for his part, argued that any agreement reached with Iran would be “far better” than the nuclear deal signed during Barack Obama’s administration, known as the Joint Comprehensive Plan of Action (JCPOA).
Analysts warn that prices could rise further if the talks fail. Meanwhile, the US Central Command (CENTCOM) said 27 vessels had been turned back due to the blockade imposed by Washington on Iranian ports.
Retired US General Wesley Clark, former Supreme Allied Commander Europe at NATO, said he was not certain that the US could reopen the Strait of Hormuz “through military means.”
In remarks to CNN, Clark noted that forcibly reopening the strait would be “a much more difficult challenge” than keeping Iranian ports closed.
Ongoing uncertainty in the Strait of Hormuz is reinforcing supply concerns, limiting downward pressure on prices. # Oil Market Unsettles, Prices Surge on Demand, Supply Imbalance
