Oil prices increased on Tuesday, March 24, after Iran denied reports of negotiations with the United States regarding a ceasefire in the Persian Gulf. This contradicts statements made by US President Donald Trump about the possibility of reaching an agreement soon.
This is reported by Finway
Oil Price Dynamics
Brent crude futures rose by $4, or 4%, reaching $103.94 per barrel. US West Texas Intermediate (WTI) oil increased by $3.49, or 4%, to $91.62 per barrel.
Political Tensions and Market Expectations
On Monday, US President Donald Trump ordered a five-day delay in strikes on Iranian power plants, noting that the American side had been in talks with unidentified Iranian officials and had reached an understanding on “important points.”
“For its part, the Iranian government rejected claims of contacts with Washington, calling it an attempt to manipulate financial markets, while the Islamic Revolutionary Guard Corps stated that it had attacked American targets and condemned Trump’s comments as ‘pre-packaged psychological operations.’
Market analysts estimate that if the Strait of Hormuz remains partially blocked until the end of April, the price of Brent crude could rise to $150 per barrel.
The day before, on March 23, the oil market exhibited price fluctuations with both increases and decreases, as investors considered the risks to energy facilities due to tensions between the US and Iran. Additional influence came from the fact that after the temporary lifting of sanctions by the United States, millions of barrels of Iranian oil were transported by sea.