Global oil prices have fluctuated ahead of a deadline set by US President Donald Trump for Iran to open the crucial Strait of Hormuz shipping route.
The price of global benchmark Brent crude rose above $111 (£84) a barrel in early trade on Tuesday before dropping to $109.
On Monday, Trump threatened to take out Iran ‘in one night’ if it failed to agree a deal with the US by 20:00 Washington DC time on Tuesday (00:00GMT Wednesday).
lifting of sanctions against the country.
Oil and gas shipments from the Middle East have been severely disrupted as Tehran threatens to attack vessels that try to use the strait in retaliation for US and Israeli airstrikes since February 28.
Speaking at the White House, Trump said that he believed ‘reasonable’ leaders in Iran were negotiating in ‘good faith,’ but that the outcome was still uncertain.
Iran has so far rejected proposals for a temporary ceasefire, demanding a permanent end to the war and the
The initial rise in prices on Tuesday suggests investors believe it may be harder than expected for the US to reach a deal due to Iran’s hardline stance and that the war could be drawn out, Ye Lin from research firm Rystad Energy said.
Meanwhile, traders are also trying to work out whether Trump actually wants a deal or if he is “just putting up a smokescreen” while preparing for a larger attack, she said.
—BB
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