Iran denies US talks, fueling concerns over oil price increase

Oil Prices Reach $104 Per Barrel Amid Fading Hopes for Iran War Deescalation

The price of Brent crude oil has surged to nearly $104 per barrel, a rise of nearly 2 percent on Thursday, as hopes for deescalation in the ongoing conflict between the US and Iran continue to fade. The increase comes after Iranian Foreign Minister Abbas Araghchi denied reports of direct talks with the US President Donald Trump’s administration.

According to Araghchi, Tehran is not engaged in direct negotiations with Washington and has “no intention of negotiating for now”. White House Press Secretary Karoline Leavitt had warned earlier that Iran would be “hit harder” than ever before if Tehran did not accept military defeat.

The surge in oil prices is attributed to the ongoing tensions between the US, Israel, and Iran. The Strait of Hormuz, a key conduit for one-fifth of global oil supplies, has been closed by Iran, prompting a significant increase in energy prices worldwide. Oil prices have risen more than 40 percent since the conflict began on February 28.

Market-watchers expect prices to continue rising until shipping is free to traverse the strait. Efforts by countries to bolster supply by tapping emergency stockpiles in coordination with the International Energy Agency have been unsuccessful so far. As of Tuesday, only four vessels were tracked transiting the waterway via their automatic identification systems, down from an average of 120 daily transits before the conflict.

The rise in oil prices has prompted numerous countries to implement fuel rationing and other energy conservation measures. The situation remains fluid, with ongoing developments in the conflict expected to impact global energy markets.

Source: Al Jazeera