Oil prices rose sharply in early trading in the United States on Sunday evening as markets reacted to the continuing war in the Middle East and reports of diplomatic efforts aimed at a temporary ceasefire between the United States and Iran.
At the same time, diplomatic contacts involving the United States, Iran and regional countries are reportedly exploring the possibility of a temporary truce that could open negotiations on ending the conflict.
Diplomatic contacts explore temporary ceasefire
According to a report published on Sunday by the news website Axios, citing sources in the US and Israeli governments as well as officials from countries in the region familiar with the talks, diplomats are discussing a two-phase agreement.
The proposal reportedly includes an initial ceasefire lasting 45 days. During this period, negotiations would take place with the aim of reaching a permanent end to the war in the Middle East. Reuters noted that it was not able to independently confirm the report. Neither the White House nor the US State Department immediately responded to requests for comment.
According to the Axios report, the duration of the ceasefire could be extended if additional time is required for negotiations to produce results.
Trump sets deadline on Strait of Hormuz
US President Donald Trump said in a telephone interview with the Wall Street Journal that he has extended a deadline for Tehran until Tuesday evening to reopen the Strait of Hormuz.
He warned that failure to do so could lead to the destruction of critical Iranian infrastructure.
Oil prices climb above $110
Oil prices were moving higher during early trading in the United States on Sunday evening, with the two main benchmarks rising above $110 per barrel as markets remained sensitive to developments in the prolonged conflict in the Middle East.
The price of US West Texas Intermediate (WTI) crude for May delivery rose by 1.86 percent to $113.62 per barrel, while North Sea Brent crude increased by 1.16 percent to $110.30 per barrel.
Source: CNA – ANA-MPA – Reuters