Brent trapped between peace hopes and attack fears
The front-month ICE Brent contract has gained by $0.35/bbl on the day, to trade at $110.39/bbl at 09.00 GMT.
IMAGE: An oil pumpjack. Getty Images
Upward pressure:
Brent crude’s price has held steady as ongoing negotiations between Iran and the US remain strained.
The White House said a proposal delivered by Iran on Sunday “lacked any meaningful improvement” from previous versions, according to ANZ Bank’s senior commodity strategist Daniel Hynes.
The remarks come after US President Donald Trump threatened to resume military action against Iran while maintaining the US blockade in the Strait of Hormuz.
The oil market “remains extremely sensitive to Iran-related headlines amid current supply disruptions,” two analysts from ING Bank noted.
Downward pressure:
Brent crude’s price has felt some downward pressure after Trump backtracked from his earlier hardline remarks to resume strikes on Iran.
The shift in Trump’s plan comes at the request of the Saudi Arabia, Qatar and the UAE, he claimed.
Oil prices pared some gains “after President Trump said he had called off a military attack on Iran due to serious negotiations taking place,” Hynes added.
By Aparupa Mazumder
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