Crude oil prices climbed to $107 per barrel on Monday before easing to $105 as Qatar moved to broker fresh talks between the United States and Iran aimed at ending the conflict and reopening the Strait of Hormuz.
Reuters reported that the proposed diplomatic engagement came amid continued disruption to oil shipments through the strategic waterway, fuelling concerns over global energy supplies and keeping crude prices volatile.
Qatari mediators were expected to meet separately with Iranian Foreign Minister Abbas Araqchi in New York and US officials on Monday or Tuesday, according to an official briefed on the negotiations.
The talks are expected to centre on an amended version of a seven-day proposal presented by Iran last week on the sidelines of the United Nations General Assembly.
Iran’s semi-official ISNA news agency confirmed that Araqchi would meet the Qatari mediators in New York to discuss the latest proposals for resolving the conflict.
The proposal reportedly calls for an end to hostilities in Iran and Lebanon, the unfreezing of billions of dollars in Iranian assets, the lifting of sanctions on Iranian oil and the removal of the US blockade on Iranian ports.
In exchange, Tehran would reopen the Strait of Hormuz, while Washington and Tehran would resume negotiations over Iran’s nuclear programme.
US President Donald Trump rejected the initial proposal on Saturday, saying Iran was seeking a swift agreement because of mounting economic pressure.
However, Trump told Axios on Sunday that US negotiators were expected to hold further discussions with Tehran this week, signalling the possibility of renewed diplomatic engagement.
Araqchi earlier said Tehran had not received an official communication from the mediators conveying Washington’s rejection of the proposal. He said Iran was awaiting the US position before determining its next steps.
The Iranian government has maintained that it is willing to negotiate an end to the conflict but would not accept negotiations under coercion.
The Strait of Hormuz, through which a significant share of the world’s oil shipments passes, has been severely disrupted since the conflict began on February 28 following US and Israeli strikes on Iran.
The disruption has intensified concerns over global crude supplies, with oil prices continuing to react to developments around the conflict and the prospect of reopening the vital waterway.
As of press time, it remained unclear whether the latest talks had taken place due to the time difference between Nigeria and New York.
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