Oil Prices Pare Gains Amid Uncertainty Over US-Iran Conflict Resolution
Oil prices pared gains on Tuesday after Qatar said efforts to secure a diplomatic resolution to the US-Iran conflict were continuing. The front-month Brent futures rose 17 cents, or 0.2 per cent, to $83.94 a barrel by 11:24am GMT (7:24pm Singapore time) after hitting a session high of $86.33.
US West Texas Intermediate (WTI) crude was down 30 cents, or 0.37 per cent, at $80.04 a barrel after touching a session high of $82.33.
Giovanni Staunovo, a UBS analyst, said oil prices are pairing earlier gains on comments from Qatari officials saying a potential US-Iran resolution has been drafted.
Qatar Foreign Ministry spokesperson Majed Al Ansari said efforts to secure a diplomatic resolution to the conflict were continuing, with mediators including Qatar, Pakistan and Oman coordinating closely to facilitate negotiations and exchange draft proposals between the two sides.
The Hormuz dispute is a central sticking point in talks. Iran wants control over inbound shipping through the Strait of Hormuz and visibility over outbound traffic, with the ability to intervene if necessary, under a plan being discussed with Oman to reopen the strategic waterway.