US and Iran Receive Ceasefire Proposal as Oil Prices Decline

Oil prices declined on Monday as investors awaited clarity on the status of talks between the US and Iran regarding a ceasefire proposal. The Strait of Hormuz, which carries oil from Iraq, Saudi Arabia, Qatar, Kuwait, and the United Arab Emirates, remains largely closed due to Iranian attacks on shipping.

An Omani-operated tanker, a French-owned container ship, and a Japanese-owned gas carrier have passed through the strait since Thursday, reflecting Iran's policy of allowing passage for vessels from countries it deems friendly.

The market is trying to realize what to expect going forward, according to SEB Research analyst Ole Hvalbye. Europe continues to lose physical barrels and products to Asia due to market tightening.