Global Oil Prices Rally
After a three-day decline, global oil prices have rebounded sharply due to escalating tensions between the United States and Iran over Tehran's nuclear program and control of the Strait of Hormuz. West Texas Intermediate (WTI) crude rose to $98 per barrel, while Brent crude closed the session above $102. The price hike also reflects Iran’s new push to impose tolls on vessels transiting the strategic waterway.
US-Iran Negotiations Stall
Iran is currently in talks with Oman to establish a customs fee system for commercial ships passing through the Strait of Hormuz—a move that has drawn strong opposition from Washington. U.S. President Donald Trump has stated his readiness to resume strikes on Tehran if Iran rejects the terms of a peace agreement.
“Washington is prepared to resume attacks on Tehran if the Iranian side rejects the terms of the peace deal,” said Donald Trump.
Hopes for a quick diplomatic breakthrough between Washington and Tehran have faded after tough statements from Iranian leadership. The Supreme Leader of Iran has taken an uncompromising stance against exporting enriched uranium abroad. Iranian diplomats acknowledge that the latest White House proposal has partially brought the two sides closer, but the situation remains tense.
Goldman Sachs Group Inc. estimates that a prolonged armed conflict and supply disruptions have driven global crude and refined product stockpiles to historic lows. In this environment, brokers are refraining from active trading, awaiting concrete negotiation results, while large industrial buyers prefer to gradually draw down their own reserves. Trump has reiterated his determination to prevent Iran from acquiring nuclear weapons, warning that if no deal is reached, Washington will take harsh measures.
The rise in oil prices underscores growing geopolitical instability in the region, which could have serious repercussions for global markets. The key risk remains the potential escalation of the US-Iran conflict, which could disrupt oil supplies and drive prices even higher. Analysts expect the situation in the Strait of Hormuz and its impact on global energy reserves to remain a major focus in international politics and economics over the coming months.
As the situation develops, Trump's skepticism regarding Iran's peace initiatives adds another layer of uncertainty to the negotiations, raising concerns about potential military actions and their impact on oil supply stability. This backdrop of escalating tensions continues to shape market reactions, influencing traders' strategies and global oil prices.