Oil prices rise due to pause in US-Iran talks

Oil prices rose again after the US and Iran suspended peace talks to end the war in the Middle East.

Reuters writes about this.

Brent crude oil prices rose more than 2% to around $108 a barrel, the highest level in three weeks. One of the key reasons is the situation in the Strait of Hormuz.

Analysts expect that the price may remain at around $90 per barrel until the end of the year, but warn that if reserves become less, oil prices could rise sharply.

War in the Middle East and negotiations between Iran and the US

On the morning of February 28, the United States and Israel launched attacks on Iran. These attacks killed Iranʼs Supreme Leader Ayatollah Ali Khamenei and almost the entire military leadership of the country — about 40 key high-ranking officials.

Iran, in response to the US and Israeli attacks, began shelling Arab countries and Israel. The war also halted tanker traffic through the Strait of Hormuz, a narrow sea corridor between Iran and Oman that connects the Persian Gulf to the Indian Ocean. It was through it that almost a fifth of the worldʼs oil exports passed — tens of millions of barrels a day.

On April 8, the parties agreed to a two-week ceasefire. On April 13, the United States began a naval blockade of Iranian ports, demanding the complete unblocking of the Strait of Hormuz for all ships.

On April 17, Lebanon and Israel agreed to a ceasefire, after which Iran unblocked the Strait of Hormuz. However, on April 18, Iran reported that it was again blocking the Strait of Hormuz due to the US naval blockade. On the same day, Iran fired on several ships attempting to pass through the strait.

On April 19, Donald Trump reported that his representatives would go to Pakistan for talks. But Iran refused to send its delegation. The Foreign Ministry noted that the US had violated the ceasefire, and Iran "cannot forget the US attacks on it during previous talks".

On April 21, Trump wrote on Truth Social that he had extended the truce with Iran until the Iranians submitted their proposals and concluded discussions.

For more news and in-depth stories from Ukraine, please follow us on X.