Kamal Ghorui
Oil prices eased below the $100 per barrel mark on Tuesday on hopes of easing United States–Iran talks aimed at ending the ongoing war. The news provided some relief amid fears over supply disruptions due to the Strait of Hormuz blockade.Brent crude futures slipped $1.86, or 1.87%, to $97.50, while US West Texas Intermediate (WTI) fell $2.25, or 2.27%, to $96.83 at 0003 GMT. The two benchmarks had climbed sharply in the previous session, with Brent gaining more than 4% and WTI rising nearly 3%, following the start of a US military blockade of Iran’s ports. US Vice President JD Vance said that Iran had shown some movement towards the United States during the 21-hour peace talks in Islamabad but not enough to reach an agreement. He said that Washington was waiting for further steps from Tehran but Iran had refused to give up its right to enrich nuclear fuel.Commenting on the talks, Vance told Fox News that they were mixed with “good signs” and progress, but added that Iran “didn’t move far enough”. Vance had led the US delegation along with Special Envoy Steve Witkoff and Jared Kushner.Earlier, on Monday, the US military announced that the blockade of the Strait of Hormuz would be extended eastwards into the Gulf of Oman and the Arabian Sea. Ship-tracking data indicated that two vessels turned back in the strait as the move came into effect.Iran, meanwhile, responded by threatening to target ports in Gulf-bordering countries after weekend negotiations in Islamabad, which aimed at resolving the crisis, broke down.However, the two nations seemed to have left a door open for more negotiations. According to sources, familiar with the discussions, cited by Reuters, diplomatic dialogue between Iran and the United States remains active. US President Donald Trump had also stated that Iran had “called this morning” and “they’d like to work a deal.” The developments come after a tense session in Islamabad, where Iranian and US officials concluded their highest-level talks in decades without reaching a breakthrough. This comes as the Middle East war has continued for over six weeks with still no end in sight. The conflict began back on February 28, after the US and Israel launched joint strikes on Iran. Consequently, Tehran effectively disrupted the crucial Strait of Hormuz, an oil pipeline that carries 20% of global fuel.
