economy
Oil prices edge lower as U.S. waits for Iran response to deal proposal
Oil prices edged lower as investors continue to assess the latest developments in the Middle East.
TL;DR
- Oil prices fell as the U.S. awaited Iran's response to a proposal to end the war and reopen the Strait of Hormuz.
- Brent crude futures dropped about 1% to $100.06 a barrel, and U.S. West Texas Intermediate futures fell 0.28% to $94.81.
- A senior Iranian official, Mohsen Rezaei, stated the U.S. must pay reparations and that Iran would not accept an unrealistic plan to reopen Hormuz.
- Iran's Foreign Ministry spokesperson, Esmaeil Baqaei, confirmed Tehran is reviewing the proposal and will respond to mediators.
- President Trump indicated the U.S. military offensive would end if Iran agreed to terms, but warned of increased bombing if no deal was reached.
- U.S. officials reported that the U.S. and Iran were close to a memorandum of understanding that would lift Strait of Hormuz restrictions, halt nuclear enrichment, and lift sanctions.
- The duration of the conflict and its effect on oil prices are seen as significant factors for future economic growth and Federal Reserve policy.