Oil Prices Remain Stable Amid Peace Talks Efforts And US’ Strait Blockade

Global oil prices on Wednesday remained stable as markets stayed cautious while the United States and Iran made efforts to bring the conflict from the war front to the discussion table again.

Global oil benchmark Brent Crude was hovering at around $95 per barrel during Asian trade hours, about 1 percent higher.

The US’ WTI Crude also gained marginally to reach the $91 per barrel mark, up around 0.5 percent.

The stable trend came as diplomatic efforts continued to bring the US and Iran to the discussion table. US President Donald Trump has indicated that the second round of talks may resume in Pakistan in the next two days.

He said the war was “close to over” even as the US blockade of the Strait of Hormuz continued.

The first round of peace talks held last week in Islamabad ended without any breakthrough, as friction points on nuclear proliferation and Hormuz toll continued to hinder consensus between the warring sides.

The US and Iran had earlier agreed upon a two-week ceasefire, one week of which has passed. As the agreement enters its second week, both sides are under pressure to at least extend the ceasefire while continuing peace talks.

The world is grappling with a severe energy crisis after oil supplies from the Gulf region virtually stopped since the start of the war.

Diplomatic efforts have helped ease tensions, resulting in a decline in oil prices from the $115 per barrel mark at the height of the conflict.

The two main points of contention were Iran’s insistence on continuing its nuclear programme and establishing a toll at the Strait of Hormuz in return for safe passage.

Iran has reportedly proposed delaying nuclear enrichment for five years, while clarity on the Hormuz toll is still awaited.