World oil prices fell on Tuesday as markets assess reports of mediation efforts to end hostilities between the US and Iran, despite new mutual strikes and threats from Yemen's Houthis to block maritime traffic with Saudi Arabia. Reuters reports, writes UNN.
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As of 04:15 GMT, Brent crude futures fell by 78 cents, or 0.9%, to $88.44 per barrel. US West Texas Intermediate (WTI) crude lost 73 cents, or 0.9%, dropping to $82.50 per barrel. The most active September WTI contract fell by 41 cents, or 0.5%, to $82.07 per barrel.
ING analysts note that the market maintains expectations of a possible de-escalation.
There is some hope for de-escalation between the US and Iran. It is reported that mediators are proposing a 10-day ceasefire, which could bring the memorandum of understanding back on track
Mediators proposed a 10-day ceasefire
At the same time, ING emphasized that reaching an agreement will be difficult due to significant differences between Washington and Tehran. Additionally, US President Donald Trump previously warned of a response to Iran after the deaths of several American servicemen.
According to a senior Iranian official who spoke to Reuters on condition of anonymity, Tehran has received a proposal from international mediators for a 10-day ceasefire. The initiative is part of efforts to preserve the agreement signed on June 17, which is intended to create conditions for achieving a long-term settlement of the war that, according to Reuters, began on February 28 after US and Israeli strikes on Iran.
Houthis announce naval blockade of Saudi Arabia amid US-Iran tensions20.07.26, 23:58