Brent Crudes to US$107 During Peace Negotiations, Here's What Officials Say!
Oil prices rose on Monday morning (April 27) after plans for a second round of peace negotiations between the US and Iran failed to materialize again. This diminished hopes for a swift restoration of energy flows through the Strait of Hormuz.
Brent for June delivery rose 2.4% to US$107.88 per barrel at 5:04 a.m. ET, while WTI for June delivery rose 2.2% to US$96.48. Tensions around the energy chokepoint also escalated after reports that Iran's Revolutionary Guards had boarded two cargo ships near the Strait of Hormuz.
ING believes the rally was fueled by the collapse of efforts to revive peace talks, which dashed expectations for a smoother return to energy flows. According to the bank, the lack of progress has made the market "tighter" by the day, necessitating a price adjustment to higher levels.
Meanwhile, Axios reported that Iran offered the US a new proposal to reopen Hormuz and end the war, while proposing that nuclear talks be postponed. However, uncertainty remains high as political signals from both sides have not yet indicated a clear path for negotiations.
Furthermore, US President Donald Trump on Saturday canceled plans to send envoys Steve Witkoff and Jared Kushner to Islamabad, Pakistan, for negotiations. Tehran, on the other hand, also stated that no meeting was planned.
Iranian Foreign Minister Abbas Araghchi revealed that he had visited Islamabad over the weekend but only met with Pakistani officials before returning. He also emphasized that the market focus is now on developments in Hormuz and any concrete indications regarding the reopening of the energy route. (gn)*
Source: Newsmaker.id
