Oil Prices Drop as Mediators Propose US-Iran Ceasefire
Oil prices declined on Tuesday as mediators proposed a US-Iran ceasefire. Brent crude futures fell by $1.10 to $88.26 per barrel, while US West Texas Intermediate crude dropped by $0.90 to $82.50 per barrel.
The proposal for a 10-day ceasefire comes after recent reports of US strikes on Iranian cities and attacks by Iran's Revolutionary Guards on US military assets. A senior Iranian official confirmed that Tehran had received the mediation proposal, but added that major differences remain between Washington and Tehran.
Yemen's Houthis have threatened to impose a naval blockade on Saudi Arabia, which could disrupt global energy supplies. The threat has been described as significant because it raises the risk of disruption to another major oil exporter.