Iran Demands Higher Price for Strait Reopening Amid Oil Price Volatility
The situation around the Strait of Hormuz remains tense as Iran has raised its demands for reopening the waterway. Iranian Foreign Minister Alirzae announced that his country will not resume direct talks with the US until certain conditions are met, including lifting sanctions and withdrawing US troops from the region.
Oman has also called on all parties to cease military activities in the strait area to facilitate an agreement. However, Iran's conditions have been deemed unacceptable by the US, putting a tripartite transit arrangement involving Iran, Oman, and the US on hold.
The price of crude oil dipped briefly following Iranian President Pezeshkian's statement that 'Iran is currently strong, united, and perceived as the victor in the war', but quickly recovered to around $79.12 after Trump's announcement that 'the U.S. and Iran are in semi-negotiations'.
The natural gas price surged 3.10% due to forecasts of warmer weather in the medium term, tightening supply-demand fundamentals in the region.