Oil prices increased to a three-week peak on Tuesday, surpassing $110 per barrel, as traders wait for the US reaction to Tehran’s proposal to end the conflict and reopen the vital Strait of Hormuz.
Brent crude traded above $111, bringing the gain this week to nearly 6%, while West Texas Intermediate remained above $98.
The rise follows reports from Iranian media stating that Foreign Minister Abbas Araghchi gave mediators in Pakistan a list of ‘red lines’ to be conveyed to the U.S., including that the conflict could end if the U.S. lifts its naval blockade, agrees to a new legal framework for transit through the strait, and ensures that no future military actions will be taken against Iran.
President Trump does not seem receptive to Iran’s proposal to end the war, despite having discussed the proposal with his advisors. Secretary of State Marco Rubio told reporters that Iran still wanted to retain control of Hormuz.
US Treasury Secretary Scott Bessent stated on social media that Iran’s oil sector is beginning to reduce production because of the blockade.
The American blockade of the Strait of Hormuz, involving ships departing from Iranian ports and driving up crude prices, began on April 13 and has so far diverted dozens of vessels.
By CEO NA Editorial Staff
