ABUJA, Nigeria (VOICE OF NAIJA)-Oil prices climbed to $104 on Monday after the United States and Iran failed to reach an agreement to end the ongoing conflict in the Middle East.
US President Donald Trump said on Monday that the ceasefire with Iran was “on life support” after dismissing Tehran’s response to a US-backed peace proposal, heightening fears that fighting could resume in the 10-week conflict that has left thousands dead and disrupted global energy supplies amid rising tensions around the Strait of Hormuz.
Reuters reported that days after the US presented a proposal aimed at restarting negotiations, Iran on Sunday issued a response centred on ending the war across all fronts, including Lebanon, where Israel, a key US ally, continues to battle Iran-backed Hezbollah militants. Trump, however, swiftly rejected the proposal.
Asked about the status of the ceasefire, Trump told reporters on Monday, “I would call it the weakest right now, after reading that piece of garbage they sent us. I didn’t even finish reading it,” he said.
Iran’s response reportedly included demands for compensation over war-related damage, recognition of its authority over the Strait of Hormuz, an end to the US naval blockade, assurances against future attacks, the lifting of sanctions, and the removal of restrictions on Iranian oil exports.
The US proposal had reportedly sought an immediate halt to hostilities before discussions on more contentious issues, including Iran’s nuclear programme.
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Reacting to the development, Iran’s Foreign Ministry spokesperson, Esmaeil Baghaei, defended the country’s demands.
“Our demand is legitimate: demanding an end to the war, lifting the (US) blockade and piracy, and releasing Iranian assets that have been unjustly frozen in banks due to US pressure; safe passage through the Strait of Hormuz and establishing security in the region and Lebanon were other demands of Iran, which are considered a generous and responsible offer,” he said.
Brent crude futures rose by 2.7 per cent to about $104 per barrel as the deadlock intensified concerns over the security of the Strait of Hormuz.
Before the conflict began on February 28, crude oil had traded below $70 per barrel.
The narrow waterway, which handles roughly one-fifth of global oil and liquefied natural gas shipments, has emerged as a critical flashpoint in the conflict.
Meanwhile, shipping data from Kpler and LSEG showed on Monday that three oil tankers carrying crude passed through the Strait of Hormuz last week and on Sunday with their tracking systems switched off to avoid potential Iranian attacks, highlighting growing risks to Middle East oil exports.
The data showed that two very large crude carriers, Agios Fanourios I and Kiara M, each transporting two million barrels of Iraqi crude, transited the strait on Sunday.
According to the data, Agios Fanourios I is heading to Vietnam, where it is expected to discharge its cargo at the Nghi Son Refinery and Petrochemical facility on May 26.
Reuters reported that the tanker had failed to pass through the strait in at least two previous attempts since loading Basrah medium crude on April 17.