Key facts
- Oil prices fell 3% early Tuesday as Iran offered to reopen the Strait of Hormuz within seven days if the U.S. eases pressure.
- Brent crude fell below $100 a barrel to $98, and WTI crude dropped to $91.
- Iran's proposal includes ending the U.S. military blockade of Iranian ports and halting military operations in the Strait.
- The proposal has been conveyed to the U.S. and includes resumption of talks to end hostilities.
- Iran will consult with intermediaries during the UN General Assembly in New York this week.
- There will be no direct meeting between U.S. President Donald Trump and Iranian President Masoud Pezeshkian.
Oil prices tumbled 3% early Tuesday as Iran offered to reopen the Strait of Hormuz within seven days if the United States eases its pressure, including ending its military blockade of Iranian ports and halting military operations in the Strait. The international benchmark, Brent Crude, slipped below the $100 per barrel mark for the first time in a week, trading at $98 a barrel as of publication. The U.S. benchmark, WTI Crude, fell to $91 per barrel.
According to a senior Iranian government official speaking to Japan’s news agency Kyodo News, Iran’s proposal has been conveyed to the U.S. and includes the resumption of talks aimed at permanently ending hostilities. Iran plans to consult with intermediaries during the UN General Assembly gathering in New York this week. However, the official clarified that there would be no direct meeting between U.S. President Donald Trump and Iranian President Masoud Pezeshkian.
The official stated there is a possibility of moving toward an agreement, but emphasized that the United States must show "seriousness and commitment" for the diplomatic push to progress. If the U.S. were to take steps toward ending the blockade, which has been crippling Iranian oil exports, Iran would be prepared to reopen the Strait of Hormuz within seven days. Earlier this weekend, Iran’s Supreme National Security Council Secretary, Mohsen Rezaei, communicated seven key conditions for Iran to return to negotiations, including the end of the U.S. blockade and the release of frozen Iranian assets.