Oil prices increased on 24 March amid concerns over supply disruptions after Iran denied it is engaged in talks with the US to resolve the conflict in the Gulf.
Iran’s denial refutes statements by US President Donald Trump suggesting an imminent deal, reported Reuters. Tehran also fired several waves of missiles at Israel on Tuesday, the Israeli military said, after Trump announced he would postpone strikes on Iranian energy facilities, citing productive talks.
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In the wake of the hostilities, the price of Brent crude increased by $1.25, or 1.3%, reaching $101.19 per barrel (bbl) at 08:58 GMT.
Meanwhile, US West Texas Intermediate (WTI) saw a rise of $2.15, or 2.4%, to $90.28/bbl.
On Monday, crude futures experienced a significant drop of more than 10% after President Trump announced a five-day delay on attacks against Iranian power plants, claiming discussions with unnamed Iranian officials had resulted in “major points of agreement”.
The ongoing Operation Epic Fury and the resulting Iranian retaliation has disrupted oil and liquefied natural gas (LNG) shipments through the Strait of Hormuz, which accounts for approximately 20% of the world’s supply.
Despite the tensions, two tankers carrying liquefied petroleum gas (LPG) from Kuwait and the United Arab Emirates (UAE) successfully navigated the strait en route to India on Monday, Reuters reported.
Gulf countries such as Saudi Arabia and the UAE have been unable to export since the onset of the conflict on 28 February, following Iranian assaults on vessels and threats to shipping through the southern strait.
Data from the London Stock Exchange Group confirmed that the two Indian-flagged tankers carried more than 92,000t of LPG and are expected to arrive at Indian ports between 26 and 28 March.
According to ship-tracking data from the MarineTraffic platform, the Pine Gas, loaded in UAE waters, navigated through the strait, followed closely by the Jag Vasant, which was transporting LPG from Kuwait.
In response to claims from Washington regarding talks, Tehran dismissed them as attempts to influence markets. Iran also claimed responsibility for attacks on US targets, denouncing Trump’s remarks as “worn-out psychological operations”.
Recent attacks targeted energy infrastructure in Iran’s Isfahan and Khorramshahr regions.
To address potential shortages, the US has temporarily eased sanctions on Russian and Iranian oil currently at sea. Traders have reportedly offered Iranian crude at a premium to Indian refiners.
Meanwhile, the International Energy Agency has been consulting with Asian and European governments on potentially releasing more strategic reserves, if needed.
