(RTTNews) – Oil prices traded lower on Tuesday amid increased hopes that possible fresh talks in Pakistan between the U.S. and Iran would lead to a deal.
However, the downside remained capped after the International Energy Agency (IEA) warned that the ongoing conflict has triggered the world’s worst energy crisis in history.
Brent crude futures dropped half a percent to $95.05 a barrel while WTI crude futures were down 0.6 percent at $86.91.
With a two-week ceasefire expiring in hours, a senior Iranian official reportedly said the country would attend peace talks with the United States in Pakistan.
U.S. President Donald Trump said the blockade or Iranian ports would not be lifted until an agreement had been reached and that Iran is losing $500 million dollars a day, which is unsustainable for Tehran.
Trump also asserted that any new deal with Tehron would be “far better” than the 2015 Joint Comprehensive Plan of Action (JCPOA).
Iran’s top negotiator and Parliamentary Speaker Mohammad Bagher Ghalibaf has accused Trump of turning the negotiating table into a surrender table or to justify renewed warmongering.
Iranian Foreign Minister Abbas Araqchi said that “continued violations of the ceasefire” by the U.S. are a major obstacle to continuing the diplomatic process.
The ongoing conflict is creating the worst energy crisis ever faced by the world, Dr Fatih Birol, the head of IEA, told France Inter radio in an interview broadcast today.
“The crisis is already huge, if you combine the effects of the petrol crisis and the gas crisis with Russia,” he added.
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