The OPEC and Brent crude oil prices fell today in the international following report of fresh ceasefire efforts between the United States and Iran. OPEC oil fell below $85 a barrel while Brent slipped to $88. Also, WTI and Murban prices declined to $82 a barrel on Tuesday morning.
Pakistan and Qatar have proposed 15-day ceasefire between the United States and Iran to resume the next round of peace talks. Consequently, oil prices fell as markets assessed mediation efforts between the United States and Iran amid renewed military attacks.
Brent crude futures declined 35 cents, or 0.4%, to $88.87 per barrel. Meanwhile, US West Texas Intermediate crude held at $82.47.
Both benchmarks remained below their highest levels in more than a month, reached during the previous session.
However, Yemen’s Iran-aligned Houthis threatened to impose a naval blockade on Saudi Arabia. The move could create another front in the regional conflict and threaten global energy supplies.
“The threats of a naval blockade on Saudi Arabia are significant because they raise the risk of disruption to another major oil exporter,” KCM Trade analyst Tim Waterer said.
Ceasefire hopes limit further price gains
Separately, an Iranian official said Tehran received a mediation proposal for a 10-day ceasefire.
The proposal seeks to revive an interim agreement signed on June 17 and support negotiations toward a lasting peace deal.
Meanwhile, US forces launched another round of strikes against Iran. Iranian forces also attacked US military assets across the region.
Despite the escalation, hopes for renewed talks limited oil price gains. IG analyst Tony Sycamore said reports of de-escalation and peace talks currently capped further increases.
However, he warned that crude prices could rise again if diplomatic efforts fail.
Meanwhile, a Reuters poll showed US crude and gasoline inventories likely fell last week. Distillate stocks, however, probably increased.
