CRUDE WRAP: WTI (Z6) SETTLES USD 3.98 LOWER AT 86.85/BBL; BRENT (F7) SETTLES USD 5.75 LOWER AT 92.57/BBL
ORIGINAL · NewsquawkCRUDE WRAP: WTI (Z6) SETTLES USD 3.98 LOWER AT 86.85/BBL; BRENT (F7) SETTLES USD 5.75 LOWER AT 92.57/BBLRead originalHide original
The crude complex was lower as the mood between the US and Iran turned more constructive, with a peace proposal appearing closer than before. Oil prices fell on the resumption of trade after US President Trump told CNN over the weekend that it is highly unlikely the US will need to resume military action against Iran, provided progress is made in negotiations over Tehran’s nuclear programme and the reopening of the Strait of Hormuz. However, US Secretary of State Rubio said talks with Iran have been unproductive, as Tehran’s demands are unacceptable. Energy saw further weakness on a couple of other bearish reports: 1) Iran reportedly dropped a demand to control the Strait of Hormuz and collect transit fees, and 2) Al Hadath reported that the Iraqi PM presented proposals to end the Iran war during a phone call with Trump. There was some pushback, though, after a Qatari official said reports of the details of a US-Iran proposal are false and that talks are ongoing. In a further positive development, Mehr News said Qatar will host US VP Vance and Iran’s Rezaei next week. Direct involvement from Vance would be a significant step, and it helped ease geopolitical uncertainty. However, in keeping with the mixed reporting, Tasnim said Rezaei’s plan to meet Vance in Doha has been denied. Separately, Trump met the Qatari PM for around 45 minutes, with talks focused on the negotiations with Iran. Note that WTI settled around lows, but has since tumbled much further after Al Arabiya reported that a Qatari-Pakistani proposal has revived the path to serious negotiations between Washington and Tehran. Brent settled after the reports - hence the disparity in settlement prices. Within the report, it noted that arrangements are underway to discuss the return of IAEA inspectors to Iran, without specifying the scope of their mission. Washington has reportedly allowed uranium enrichment inside Iran at a level of 3.67%, and Tehran has agreed. America will release Iranian assets worth between USD 6-9 billion if an agreement is reached, and the Strait of Hormuz will be opened and the naval blockade lifted immediately. A preliminary agreement on reducing Iranian uranium enrichment is likely, while discussions are underway regarding the involvement of a third country to facilitate the reduction of highly enriched uranium levels in Iran.
Crude settled lower amid mixed US-Iran negotiation reports; the source also described proposed nuclear and Hormuz terms and a further post-settlement WTI decline.
News detail
The crude complex was lower as the mood between the US and Iran turned more constructive, with a peace proposal appearing closer than before. Oil prices fell on the resumption of trade after US President Trump told CNN over the weekend that it is highly unlikely the US will need to resume military action against Iran, provided progress is made in negotiations over Tehran’s nuclear programme and the reopening of the Strait of Hormuz. However, US Secretary of State Rubio said talks with Iran have been unproductive, as Tehran’s demands are unacceptable. Energy saw further weakness on a couple of other bearish reports: 1) Iran reportedly dropped a demand to control the Strait of Hormuz and collect transit fees, and 2) Al Hadath reported that the Iraqi PM presented proposals to end the Iran war during a phone call with Trump. There was some pushback, though, after a Qatari official said reports of the details of a US-Iran proposal are false and that talks are ongoing. In a further positive development, Mehr News said Qatar will host US VP Vance and Iran’s Rezaei next week. Direct involvement from Vance would be a significant step, and it helped ease geopolitical uncertainty. However, in keeping with the mixed reporting, Tasnim said Rezaei’s plan to meet Vance in Doha has been denied. Separately, Trump met the Qatari PM for around 45 minutes, with talks focused on the negotiations with Iran. Note that WTI settled around lows, but has since tumbled much further after Al Arabiya reported that a Qatari-Pakistani proposal has revived the path to serious negotiations between Washington and Tehran. Brent settled after the reports - hence the disparity in settlement prices. Within the report, it noted that arrangements are underway to discuss the return of IAEA inspectors to Iran, without specifying the scope of their mission. Washington has reportedly allowed uranium enrichment inside Iran at a level of 3.67%, and Tehran has agreed. America will release Iranian assets worth between USD 6-9 billion if an agreement is reached, and the Strait of Hormuz will be opened and the naval blockade lifted immediately. A preliminary agreement on reducing Iranian uranium enrichment is likely, while discussions are underway regarding the involvement of a third country to facilitate the reduction of highly enriched uranium levels in Iran.
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