Oil slides 4pc amid fragile diplomacy signals

NEW YORK: Oil prices slid about 4 per cent on Wednesday on reports that the US had sent Iran a 15-point proposal aimed at ending the war, prompting talk of progress toward a ceasefire.

Brent futures fell 3.96, or 3.8pc, to $100.53 a barrel at 10:41am EDT (1441 GMT), while US West Texas Intermediate (WTI) crude fell $3.57, or 3.9pc, to $88.78.

Pakistan has delivered a US proposal to Iran, and either Pakistan or Turkiye could be a venue for discussions to de-escalate the war, a senior Iranian official told Reuters on Wednesday.

Iran has denied that direct talks had taken place, and an Iranian military spokesman said the US is negotiating with itself, according to state media.

Despite market turmoil, Washington holds off tapping strategic oil reserves

Despite market turmoil, Washington holds off tapping strategic oil reserves

“This latest price downturn largely relates to a 15-point US plan to end the war,” analysts at energy advisory firm Ritterbusch and Associates said in a note.

“Iran has yet to indicate a positive response to the reported recent talks, and until a greater definition is forthcoming regarding major progress, the oil market will remain vulnerable to another price up-spike.”

Extreme price swings in recent weeks boosted Brent’s historic or actual 30-day close-to-close volatility to its highest since April 2022 and WTI’s volatility to its highest since June 2020.

The war has all but halted shipments of oil and liquefied natural gas through the Strait of Hormuz, which typically carries about one-fifth of the world’s LNG and crude supply. The International Energy Agency (IEA) has called it the biggest-ever oil supply disruption.

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