Khaberni - Oil prices reduced their gains on Tuesday after briefly surpassing the $100 per barrel mark, following President Donald Trump's announcement of extending the ceasefire with Iran until Tehran presents a proposal.
Brent crude futures experienced sharp fluctuations, closing up around 3% at settlement today, then rising again by more than 5% to record a session high of $101.15, after reports indicated that US Vice President JD Vance canceled his visit to Islamabad, where he was to conduct peace talks with Iran.
Prices later declined after Trump stated that the ceasefire would remain in effect until the Iranian leaders submit what he described as a unified proposal, and the talks conclude, while affirming the continuation of the American naval blockade imposed on Iran.
Iran had earlier stated it had not yet decided whether to participate in peace talks with the United States. However, an advisor to Mohammad Bagher Ghalibaf, Iran's chief negotiator, commented on Trump's announcement saying the extension of the ceasefire was a "maneuver to buy time" for a surprise attack.
Brent crude futures climbed $4.22, or 4.4%, to $99.67 per barrel in post-settlement trading today.
The price of US West Texas Intermediate crude increased at settlement by $2.52, or 2.8%, to $92.13.
Shipping data showed that navigation through the Strait of Hormuz, through which normally about 20% of the world’s oil and liquefied natural gas supplies pass, was almost completely halted on Tuesday, with only three ships passing in 24 hours.
Saad Rahim, chief economist at commodity trading company Trafigura, said during the Financial Times Global Commodities Summit, "You have already lost a billion barrels so far, even if this crisis is resolved tomorrow. If the situation persists for another month, the loss will reach one and a half billion barrels."
