(April 29) : Oil steadied as investors focused on the next steps for peace talks over the Iran war, with the crucial Strait of Hormuz remaining effectively closed, extending disruptions that have upended global markets.
West Texas Intermediate traded near US$99 a barrel after advancing 3.7% on Tuesday. Brent closed near US$111. President Donald Trump said Iran has asked the US to lift a naval blockade of the strait while the two sides negotiate an end to hostilities that have choked off energy supplies from the Middle East.
The Strait of Hormuz has been virtually impassable since the conflict began in late February, cutting off flows of crude, gas and oil products, and driving up energy prices. The war has raised concerns about an inflation crisis, with the International Energy Agency calling it the biggest supply shock in history.
“I think the US still holds the much bigger advantage, and Iran is feeling the pressure of the blockade,” said Dennis Kissler, senior vice president for trading at BOK Financial Securities Inc.
The conflict has led to the United Arab Emirates deciding to leave OPEC next month after six decades of membership. The UAE believes the shortage caused by the war will require agility to respond to market demands without being constrained by the collective decision-making process by the wider group.
A ceasefire has been in place since early April, and mediators expect Iran will submit a revised proposal to end the war in the next few days, CNN reported on Tuesday, citing people close to the mediation process. Tehran wants the critical waterway for oil and gas shipments open “as soon as possible, as they try to figure out their leadership situation,” Trump said on Truth Social.
See also: UAE to leave Opec in May as Iran war reshapes oil market
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