(RTTNews) – Oil prices gave up early gains on Monday after reports emerged that the United States and Iran are engaged in indirect negotiations to explore a potential 45-day truce that could lead to a more permanent resolution to the conflict.
Brent crude futures for June delivery were down 0.4 percent at $108.56 a barrel, after hitting a high of $111.88 a barrel earlier. WTI crude futures for May delivery fell 1.6 percent to $109.81.
The foreign ministers of Turkey, Egypt and Pakistan are attempting to broker negotiations between Iran and the United States, according to the Wall Street Journal and Axios.
However, it was said that chances of securing even a partial agreement within the next 48 hours remain uncertain.
The diplomatic push came after U.S. President Donald Trump renewed his threat to attack Iran’s bridges and power plants, warning he would bring “Hell” to Iran if they do not open the vital waterway by 8 p.m. Eastern Time on Tuesday.
Trump said he plans to hold a news conference “with the Military” at the Oval Office at 1 p.m. on Monday after U.S. forces rescued an American airman in Iran last week.
Tehran condemned Trump’s remarks as an “incitement to war crimes” and warned to respond “in kind” to any attacks on its infrastructure.
Describing Thump’s threats as a sign of desperation and rage, Iran’s President’s office said the Strait of Hormuz will be reopened only when all war damages are compensated from transit tolls.
Meanwhile, OPEC+ warned after a weekend meeting that war-related damage to energy infrastructure could have lasting repercussions for oil supply even after the conflict subsides.
The group has decided to increase oil output by 206,000 barrels per day in May to help address a global supply shortfall, although Iran indicated that Iraq would be exempt from restrictions it imposed on ships passing through the Strait of Hormuz.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
www.nasdaq.com