Oil price falls after US-Iran negotiation signals

Pakistan offers to mediate talks between the US and Iran Oil prices fell this Wednesday (25), amid increased expectations of a possible ceasefire in the conflict involving Iran, which brought relief to global markets after days of strong volatility. 🔎At around 9:23 am, the Brent barrel was down 4.36%, at US$95.86. West Texas Intermediate (WTI) fell 3.98%, to US$88.67. According to information from Reuters and AP, Pakistan handed Iran a ceasefire proposal drawn up by the United States. The initiative comes amid attempts to end the war in the Middle East, despite contradictory statements between the two countries. US President Donald Trump stated that there is progress in negotiations, but the Iranian government denies that there are direct negotiations and says that Washington “negotiates with itself”. The plan sent would have 15 points and includes measures such as limitations on Iran’s nuclear and missile program, an end to support for allied groups in the region and navigation guarantees in the Strait of Hormuz, in addition to possible sanctions relief. Pakistan positioned itself as a mediator and even as a possible host for negotiations, with support also from Türkiye. Still, there is no official confirmation of meetings between the countries, and the conflict remains without a defined solution. Even with the recent decline, fuel prices still reflect the impact of the conflict, which caused one of the biggest recent energy shocks. The Strait of Hormuz — a strategic route through which around a fifth of the global oil supply passes — remains restricted, maintaining the risk of supply interruptions. The prospect of easing tensions boosted global risk appetite. European stock markets advanced, with the STOXX 600 index rising around 1.4%, while government bond yields fell, especially in countries more dependent on imported energy, such as Italy. Even so, experts say it is too early to bet on a lasting drop in oil prices. BlackRock CEO Larry Fink warned that a barrel could reach $150 if the conflict worsens, which could lead to a global recession. Oil extraction pumps, Iran, Middle East Reuters

Source link