Oil prices edge lower as U.S. waits for Iran response to deal proposal
Oil prices edged lower as investors continue to assess the latest developments in the Middle East.
TL;DR
- Oil prices fell as the U.S. awaited Iran's response to a proposal to end the war and reopen the Strait of Hormuz.
- Brent crude futures dropped about 1% to $100.06 a barrel, and U.S. West Texas Intermediate futures fell 0.28% to $94.81.
- A senior Iranian official, Mohsen Rezaei, stated the U.S. must pay reparations and that Iran would not accept an unrealistic plan to reopen Hormuz.
- Iran's Foreign Ministry spokesperson, Esmaeil Baqaei, confirmed Tehran is reviewing the proposal and will respond to mediators.
- President Trump indicated the U.S. military offensive would end if Iran agreed to terms, but warned of increased bombing if no deal was reached.
- U.S. officials reported that the U.S. and Iran were close to a memorandum of understanding that would lift Strait of Hormuz restrictions, halt nuclear enrichment, and lift sanctions.
- The duration of the conflict and its effect on oil prices are seen as significant factors for future economic growth and Federal Reserve policy.