Crude Prices Slip Amid Mediation Push Following U.S.-Iran Attacks

PUKMEDIA

Oil prices.

Oil prices softened on Tuesday, with markets weighing reports of mediation efforts between the ‌U.S. and Iran against an exchange of fresh attacks between the two and threats of a naval blockade of Saudi Arabia by Yemen's Houthis.

According to Reuters report, Brent crude futures eased 78 cents, or 0.9%, to $88.44 per barrel by 0415 GMT. U.S. West Texas Intermediate crude was down 73 cents, or 0.9%, to $82.50 per barrel, while the more active contract for September delivery slipped 41 cents, or 0.5%, to $82.07 a barrel.

A senior Iranian official told Reuters Tehran had received a proposal from mediators for a 10-day ceasefire in efforts to salvage the deal signed on June 17, intended to pave the way for a lasting agreement to end the war that began on February 28 with U.S.-Israeli attacks on Iran.

The diplomatic push followed another night of U.S. ‌strikes on ⁠Iranian cities and attacks by Iran's Revolutionary Guards on U.S. military assets across the region. Later on Monday, U.S. Central Command said it had begun another round of strikes on Iran.

A tanker in the Strait of Hormuz reported being struck by an unknown projectile, forcing its crew to abandon ship and board a lifeboat, the United Kingdom Maritime Trade Operations agency said on Tuesday. Vessel ⁠crossings via the strait also dropped further amid growing caution following fresh attacks between the U.S. and Iran.

Additionally, Yemen's Iran-aligned Houthis said on Monday they would impose a naval blockade on Saudi Arabia, opening a potential new front against the U.S. in its war ⁠on Iran and raising the threat to global energy supplies and trade beyond the Gulf.



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