Crude oil prices rose to $107 per barrel on Monday from $104, before settling back to $105, as Qatar prepared fresh talks between the United States and Iran aimed at ending the conflict and reopening the Strait of Hormuz.
The diplomatic move comes amid sustained disruptions to oil shipments through the strategic waterway, which has heightened concerns over global energy supply and triggered volatility in crude prices, Reuters reported.
Qatari mediators are expected to meet separately with Iranian Foreign Minister Abbas Araqchi in New York and with the US side on Monday or Tuesday, according to an official briefed on the negotiations.
The talks will focus on an amended version of a seven-day proposal Iran presented last week on the sidelines of the United Nations General Assembly.
Iran’s semi-official ISNA news agency confirmed that Araqchi will meet the mediators in New York to discuss the latest proposals for resolving the crisis.
Under the seven day plan, Iran is proposing an end to hostilities in Iran and Lebanon, the unfreezing of billions of dollars in its assets, removal of sanctions on its oil, and the lifting of the US blockade on its ports.
In return, Tehran would allow the Strait of Hormuz to be reopened, while both countries would resume negotiations on Iran’s nuclear programme.
US President Donald Trump rejected the initial proposal on Saturday, saying Iran was seeking a quick agreement because of economic pressure.
However, Trump told Axios on Sunday that US negotiators were expected to hold further discussions with Tehran this week, signaling a possible resumption of diplomatic engagement.
The Strait of Hormuz, which normally handles about a fifth of the world’s oil and liquefied natural gas, has been effectively blocked by Tehran since the war began following US and Israeli strikes on Iran on February 28.
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