(RTTNews) – Crude oil prices have edged higher on Monday as the delay in reopening of the Strait of Hormuz persists despite assurance by the U.S. President Donald Trump as reports emerge on Iran taking a hardline stance.
WTI Crude Oil for July month delivery was last seen trading up by $0.52 (or 0.57%) at $91.06 per barrel.
Over the past few weeks, U.S. and Iranian negotiators exchanged draft agreements for a Memorandum of Understanding which included immediate reopening of the Strait of Hormuz.
After intense mediation by the U.S. for two days, last Wednesday, Israel and Lebanon jointly announced a ceasefire, bringing down the Middle East tension simmering for years.
However, reports of Israel carrying out strikes in Beirut targeting the Iran-backed Hezbollah militant group emerged, prompting condemnation from Iran.
Accusing Israel of repeatedly violating the ceasefire, on Sunday, Iran commenced a series of attacks on Israel, carrying out nearly 11 strikes on Israel. The expectations of a U.S.-Iran peace deal diminished after the Iranian offensive.
To prevent further escalation, U.S. President Donald Trump spoke to Israeli Prime Minister Benjamin Netanyahu, asking him to hold off any retaliatory strikes. However, Israel conducted strikes in western and central Iran.
Later, both nations announced halting their attacks after Trump’s intervention. However, Iranian military command has warned of more severe attacks on Israel if it struck southern Lebanon once again.
Oil prices went up after Iran launched the ballistic missile attacks on Sunday as concerns of an imminent collapse of the ongoing negotiations for a U.S.-Iran peace deal started to increase.
The Israeli Defense Forces confirmed today that the Israeli Air Force struck several targets in the petrochemical complex in the Mahshahr area.
Today, Trump posted via Truth Social that Israel and Iran have agreed to a ceasefire and hinted that those final negotiations on “peace” (i.e., U.S.-Iran deal) are proceeding.
Trump confirmed that until a final agreement is reached the blockade he imposed on all ships travelling to and from Iranian ports will remain.
Citing a military source, Iran’s Tasnim News Agency reported that Iran has made full preparations for a prolonged war with Israel and for striking U.S. assets in the region. Further, the source confirmed sufficient and necessary measures for such a scenario has been put in place.
Since the start of the U.S.-Israel versus Iran war on February 28, the Strait of Hormuz remains effectively shut and the traffic has collapsed nearly by 90% compared to pre-war levels.
Though the war is in its fourth month, despite Trump’s repeated reassurance, several rounds of negotiations, and multiple exchange of messages between the U.S. and Iran, a peace deal is yet to be announced.
Meanwhile, the Organization of Petroleum Exporting Countries decided to add another 188,000 barrels of crude to its collective production.
Since April, the cartel has endorsed a series of output hikes to nearly 600,000 barrels daily. However, the ongoing blockage of traffic across the Strait of Hormuz has made it difficult for big producers to restore output levels.
After months of traffic disruption around the Hormuz strait, Red Sea allowed shipments to bypass the Persian Gulf.
Today, Yemen’s Houthi militant group announced imposing a complete and total ban on Israeli navigation in the Red Sea.
The U.S. Dollar Index was last seen trading at 99.94, down by 0.12 (or 0.12%).
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