Crude Oil Prices Mixed as U.S.-Iran Negotiate Indirectly
Oil prices were mixed on Monday as investors monitored indirect contacts between the US and Iran amid uncertainty over the possible reopening of the Strait of Hormuz.
International benchmark Brent crude futures for October traded at $83.56 per barrel, up 0.01% from the previous close of $83.55.
US benchmark West Texas Intermediate (WTI) futures for September traded at $78.06 per barrel, down 0.15% from $78.18 in the previous session.
Iran is not currently holding direct negotiations with Washington, but is only exchanging messages through mediators, Foreign Minister Abbas Araghchi said on Sunday.
“Until the violations of the memorandum of understanding by the United States are over and the United States does not compensate for what it has violated, it is not possible to restart the negotiations,” Araghchi told reporters, according to the Tasnim news agency.
“Mediators are still trying to find new ways to negotiate,” he added.
Araghchi said talks with Oman on establishing a new maritime route through the Strait of Hormuz have made “good progress and reached their final stage.”
“This, of course, does not mean the opening of the Strait of Hormuz,” he said, adding that any reopening was “subject to a series of conditions,” without elaborating.
Meanwhile, US President Donald Trump on Sunday signalled that he is prepared to rely on mounting economic pressure on Iran rather than immediately launching a new military offensive, according to an Axios interview.
“We are low-keying it,” Trump said, describing contacts between Washington and Tehran as “only semi-negotiating.”
Trump said that Iran is in “very bad shape” financially and is struggling to pay its troops. “We are just watching Iran with its huge inflation and the fact they have no money.”
He also said a US naval blockade has intensified pressure on the Iranian government and contributed to its economic crisis.
The continued closure of the Strait of Hormuz and enforcement of the US blockade kept supply concerns in focus, while indirect contacts between Washington and Tehran raised hopes of a diplomatic solution.
The US Central Command (CENTCOM) said Sunday that American forces redirected 55 commercial vessels, disabled two and boarded two others as part of strict enforcement of a US blockade against Iran.
CENTCOM said in a post on the US social media platform X that US sailors were standing watch aboard the USS Ross (DDG 71), one of more than 20 US warships deployed to the Middle East in support of military missions, including enforcement of the blockade.
The command did not provide additional details about the vessels or the circumstances surrounding the actions in its post. Oil Prices Slide Below $85 as Supply Risk Eases
