Crude oil prices are down on Wednesday, weighed down by press reports that Donald Trump has transmitted a 15-point peace plan to Tehran to end the war in the Middle East.
The barrel below $100 Several media outlets, including the New York Times and Israeli TV channel Channel 12, report that the Trump administration has conveyed its demands to Tehran through Pakistan, which has good relations with both parties.
Donald Trump continues to claim negotiations are happening “right now” with Tehran. However, doubts about their reality persist as Iran denies currently discussing with the United States.
“What is clear, however, is that Trump wants this war to end,” says Ipek Ozkardeskaya, an analyst at Swissquote.
Around 11:20 GMT (12:20 in Paris), the price of a barrel of Brent North Sea crude for May delivery was down 6.11% to $98.11.
Its US counterpart, West Texas Intermediate crude for delivery the same month, dropped 5.90% to $86.90.
“It remains extremely uncertain how Iran will react,” as American demands “have little chance of being accepted” by Tehran, says Arne Lohmann Rasmussen, an analyst at Global Risk Management.
“A market guided by the news” Among the 15 points, five concern the Iranian nuclear program, others impose the abandonment of support for “proxies” in the region, such as Hezbollah or Hamas, and one point insists the Strait of Hormuz remains open to maritime navigation.
According to Mr. Rasmussen, “there is still no prospect of the Strait of Hormuz reopening soon,” through which usually about 20% of the world’s oil and natural gas production passes.
This passage remains almost paralyzed in practice, despite Iran’s assertion that the strait remains open to “non-hostile vessels,” according to a statement sent to the International Maritime Organization (IMO).
In this context, concerns about the availability of crude oil are mounting.
Following a request from Japan, the International Energy Agency (IEA), which recently released 400 million barrels of oil from member countries’ reserves, stated that it is ready to implement new storage “if and when necessary.”
For now, the significant price fluctuations are explained by “a market guided by the news,” says Kathleen Brooks, an analyst at XTB.
