Oil prices are falling 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.
Several media outlets, including the New York Times and Israeli television 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 persist about their reality as Iran denies discussing with the United States.
“What is clear, however, is that Trump wants this war to end,” said Ipek Ozkardeskaya, an analyst at Swissquote.
At around 11:20 GMT (12:20 Paris time), the price of a barrel of Brent crude oil from the North Sea, for delivery in May, was down 6.11% to $98.11.
Its American counterpart, the barrel of West Texas Intermediate, for delivery in the same month, fell by 5.90% to $86.90.
“It remains extremely uncertain how Iran will react,” as American demands “are unlikely to be accepted” by Tehran, said Arne Lohmann Rasmussen, an analyst at Global Risk Management.
Among the 15 points, five concern the Iranian nuclear program, others require the abandonment of support for “proxies” in the region, such as Hezbollah or Hamas, and one point insists that 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 about 20% of the world’s oil and liquefied natural gas production usually passes.
This passage remains virtually paralyzed in practice, despite Iran’s claim 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 increasing.
After a request from Japan, the International Energy Agency (IEA), which recently released 400 million barrels of oil from member countries’ reserves, stated it is ready to implement new storage “if and when necessary.”
For now, the sharp fluctuations in prices are explained by “a market guided by the news,” said Kathleen Brooks, an analyst at XTB.
Context: Oil prices falling due to reports of a peace plan for the Middle East transmitted by Donald Trump to Tehran. Fact Check: Iran denies discussing with the United States and the Strait of Hormuz remains virtually paralyzed despite claims of being open to “non-hostile vessels.”
