NEW YORK: Oil prices slid about 2 percent on Wednesday after paring deeper losses earlier in the trading session, as Iran reviewed a US proposal to end the war that has disrupted global energy flows from the Persian Gulf.
Brent futures fell USD2.27, or 2.2 percent, to settle at USD102.22 a barrel, while US West Texas Intermediate crude futures fell USD2.03, or 2.2 percent, to settle at USD90.32. Earlier in the session, Brent futures were down by as much as 7 percent. Iran is still reviewing a US proposal to end the war in the Gulf, despite an initial response that was negative, a senior Iranian official told Reuters on Wednesday, indicating that Tehran had so far stopped short of rejecting it outright.
US President Donald Trump will hit Iran harder if Tehran fails to accept that the country has been “defeated militarily,” White House press secretary Karoline Leavitt said.
Publicly, Iranian officials poured withering scorn on the prospect of any negotiations with the Trump administration. But an apparent delay in delivering a formal response to Pakistan, which delivered a 15-point proposal on behalf of Washington, appeared to signal that at least some figures in Tehran may be considering it.
“The (oil) complex will continue to zig and zag on Iran war headlines as the White House attempts to play up ongoing talks while Iran’s refusal to acknowledge any progress in discussions will preclude much downside follow-through,” analysts at energy advisory firm Ritterbusch and Associates said in a note.
Extreme price swings in recent weeks boosted both crude benchmarks’ historic volatility, based on an actual 30-day close-to-close measurement, to their highest levels since April 2022.
OIL SHIPMENTS VIA STRAIT OF HORMUZ LARGELY HALTED
The war has all but halted shipments of oil and liquefied natural gas through the Strait of Hormuz, which typically carries about one-fifth of the world’s LNG and crude supply. The International Energy Agency has called it the biggest-ever oil supply disruption.
The result is a daily loss of around 20 million barrels of crude, meaning there has been a loss of some 500 million barrels, or five full days of global supply, since the war began on February 28. The White House press secretary said the US is tracking “very closely” how to get oil tankers through the Strait.
India, meanwhile, has bought its first cargo of Iranian liquefied petroleum gas in years after the US temporarily removed sanctions on Tehran’s oil and refined fuels, sources said. Japanese Prime Minister Sanae Takaichi asked IEA chief Fatih Birol for an additional coordinated release of oil stockpiles, as Tokyo seeks to shield consumers from higher energy prices.
NEW YORK: Oil prices slid about 2 percent on Wednesday after paring deeper losses earlier in the trading session, as Iran reviewed a US proposal to end the war that has disrupted global energy flows from the Persian Gulf.
Brent futures fell USD2.27, or 2.2 percent, to settle at USD102.22 a barrel, while US West Texas Intermediate crude futures fell USD2.03, or 2.2 percent, to settle at USD90.32. Earlier in the session, Brent futures were down by as much as 7 percent. Iran is still reviewing a US proposal to end the war in the Gulf, despite an initial response that was negative, a senior Iranian official told Reuters on Wednesday, indicating that Tehran had so far stopped short of rejecting it outright.
US President Donald Trump will hit Iran harder if Tehran fails to accept that the country has been “defeated militarily,” White House press secretary Karoline Leavitt said.
Publicly, Iranian officials poured withering scorn on the prospect of any negotiations with the Trump administration. But an apparent delay in delivering a formal response to Pakistan, which delivered a 15-point proposal on behalf of Washington, appeared to signal that at least some figures in Tehran may be considering it.
“The (oil) complex will continue to zig and zag on Iran war headlines as the White House attempts to play up ongoing talks while Iran’s refusal to acknowledge any progress in discussions will preclude much downside follow-through,” analysts at energy advisory firm Ritterbusch and Associates said in a note.
Extreme price swings in recent weeks boosted both crude benchmarks’ historic volatility, based on an actual 30-day close-to-close measurement, to their highest levels since April 2022.
OIL SHIPMENTS VIA STRAIT OF HORMUZ LARGELY HALTED
The war has all but halted shipments of oil and liquefied natural gas through the Strait of Hormuz, which typically carries about one-fifth of the world’s LNG and crude supply. The International Energy Agency has called it the biggest-ever oil supply disruption.
The result is a daily loss of around 20 million barrels of crude, meaning there has been a loss of some 500 million barrels, or five full days of global supply, since the war began on February 28. The White House press secretary said the US is tracking “very closely” how to get oil tankers through the Strait.
India, meanwhile, has bought its first cargo of Iranian liquefied petroleum gas in years after the US temporarily removed sanctions on Tehran’s oil and refined fuels, sources said. Japanese Prime Minister Sanae Takaichi asked IEA chief Fatih Birol for an additional coordinated release of oil stockpiles, as Tokyo seeks to shield consumers from higher energy prices.
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