Oil prices again approached $100 on Thursday as tanker traffic through the Strait of Hormuz remained very low and there was no clear path to fully reopening the vital sea lane.
international benchmark brent Oil for June delivery rose nearly 5% to close at $99.39 per barrel. west texas intermediate Oil prices rose about 4% in May, settling at $94.69 per barrel.
Several oil tankers pass through the strait each day as the U.S. Navy closes Iran’s coast and the Iranian government threatens to retaliate against ships in the Persian Gulf.
President Donald Trump told reporters Thursday that the United States and Iran will “probably” meet over the weekend for a second round of negotiations. However, no date has been officially set for the talks.
President Trump earlier announced that Israel and Lebanon had agreed to a 10-day ceasefire. Israel’s war against Hezbollah had been the culmination of negotiations between the United States and Iran that failed in Pakistan last weekend.
Several European and Gulf Arab leaders believe negotiations between the U.S. and Iran on a deal could take six months, people familiar with the matter told Bloomberg.
Meanwhile, a two-week ceasefire between the United States and Iran is set to expire on Tuesday, April 21st.
President Trump agreed to a ceasefire in exchange for Iran opening the strait to traffic, but Tehran seeks to maintain control of ships in the sea lanes.
