Brent oil prices reached above $105 per barrel (bbl) at the start of this week. This price increase comes as peace negotiations between the United States and Iran over maritime access to ports are at a stalemate.
Impact of Trump's Policies on the Oil Market
Crude oil prices continue to rise as Donald Trump, the President of the United States, has rejected the peace proposal from Tehran. This issue has affected the oil market, leading to trades above $105.
Read more: The CEO of the National Petrochemical Company reported on energy supply challenges
Efforts to Reduce Tensions
Iranian officials traveled to the United Nations General Assembly (UNGA) in New York last week with a proposal for a seven-day ceasefire plan. This plan is related to the reopening of the Strait of Hormuz. Trump emphasized in his speech at the General Assembly that he is considering options for the complete destruction of the Tehran government to prevent it from acquiring nuclear weapons.
However, Trump stated that diplomatic avenues remain open and he expects negotiations to resume next week.
So far, the United States Central Command (CENTCOM) has redirected 122 commercial vessels, deactivated more than three vessels, and inspected two vessels to prevent entry or exit to Iranian ports. According to published reports, 21 vessels attempted to pass through the Strait of Hormuz on Saturday, of which 18 were entering and 8 were exiting.
Meanwhile, 9 vessels operated in a 'dark mode', meaning their position information was not visible in the AIS system. This situation indicates that vessels leaving the Persian Gulf are less inclined to disclose their positional information.
Abdul Latif bin Rashid Al Zayani, the Foreign Minister of Bahrain, in a statement, called for a full return to free passage based on rights and navigational freedoms.
Read more: Energy groups requested Trump to reject fuel export restrictions · Oil prices increased by more than 2% due to Iran's positions on the Strait of Hormuz
