(RTTNews) – Extending the gains from yesterday, crude oil has soared on Tuesday to reach triple digits earlier amid the ongoing U.S.-Iran stalemate. However, crude oil gave back ground later following reports of Iran readying a revised peace plan but managed to remain sharply higher.
WTI Crude Oil for June month delivery was last seen trading up by $3.44 (or 3.57%) at $99.81 per barrel.
Oil prices are hovering around 55% higher since the start of the U.S.-Israel versus Iran war on February 28.
The Strait of Hormuz has remained effectively shut for nearly a two-month period, crippling the transit of oil and energy vessels from Arab countries to the rest of the world.
When the two-week ceasefire announced by U.S. President Donald Trump was about to end on April 22, he extended the truce indefinitely. Trump also agreed to a second round of negotiations between the U.S. and Iran.
Before the talks began, Trump stopped the U.S. envoys from traveling to Pakistan. Trump announced that since the U.S. has “all the cards” and “Iran has none,” Iran can call the U.S. with a plan to end the war.
Iran relayed a fresh proposal to the U.S. wherein it wanted the withdrawal of the U.S. blockade on Iran’s ports and agreed to reopen the strait immediately as a reciprocal move. Among the other key points, Iran wanted the U.S. and Israel to stop any further strikes on Iran.
However, Iran planned to have discussions with the U.S. on its crucial nuclear programs at a later date.
Trump was reportedly displeased with this proposal after reviewing it with his team.
Today, through his social media platform Truth Social, Trump stated that Iran is in a state of collapse and added that Iran wants the U.S. to allow reopening of the Strait of Hormuz as quickly as possible.
CNN reported that Iran is coming up with a “revised proposal” soon and added that mediators in Pakistan are awaiting the new plan to end the war after Trump found the earlier plan unacceptable.
The Strait of Hormuz, which was shut by Iran after the U.S.-Iran war erupted and triggered massive supply disruption concerns globally, continues to remain blocked.
Reports indicate that the U.S. naval blockade has led several Iranian ships to loiter near Iranian ports, unable to leave the Middle East.
Analysts have already warned of “demand destruction” if oil prices remain at an exorbitant price level.
In another significant development in oil trade, the United Arab Emirates announced today that it was exiting the Organization of Petroleum Exporting Countries (OPEC) as well as the OPEC+ group.
Experts feel that being a longstanding OPEC member-nation, the U.A.E.’s exit could weaken the group in the long run. Currently though it would not affect the oil trade which is already impacted by the closure of the Strait of Hormuz.
The U.A.E. had been criticizing fellow Arab nations of not supporting it enough to shield from numerous attacks by Iran during the Middle East war.
Staying out of the group would also offer the U.A.E. freedom to decide its own production and price targets.
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