.jpg)
1 hour ago
3
Article content
(Bloomberg) — Oil was steady as investors focused on the next steps for peace talks over the Iran war, with the near-closure of the crucial Strait of Hormuz prolonging disruptions that have upended global markets.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Brent traded near $111 a barrel after rising 2.8% on Tuesday, and West Texas Intermediate was above $99. President Donald Trump said Iran has asked the US to lift a naval blockade of the strait while the two sides negotiate an end to hostilities that have choked off energy supplies from the Middle East.
Article content
Article content
Article content
Trump has instructed aides to prepare for an extended blockade, the Wall Street Journal reported, citing US officials. In recent meetings, the president has opted for continuing to squeeze Iran’s economy and oil exports by preventing shipping to and from its ports, the report said. He assessed that other options, including the resumption of bombing, carried more risk.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
A ceasefire has held since early April with the US and Iran locked in an impasse over peace talks, although the naval blockade appears to be putting pressure on Tehran. The nation is rapidly running out of crude storage space, which is threatening to accelerate production cuts, according to Kpler Ltd.
Article content
“The stalemate could last for weeks,” Michelle Brouhard, the head of policy and geopolitical risk at Kpler, told Bloomberg Television, “It’s either gonna be the global market tells Trump that we can’t take this shortage of oil any longer, or it’s gonna be Iran who says we want to be able to get our oil out.”
Article content
Mediators expect Iran will submit a revised proposal to end the war in the next few days, CNN reported on Tuesday, citing people close to the process. Tehran wants the crucial waterway for oil shipments open “as soon as possible, as they try to figure out their leadership situation,” Trump said on Truth Social.
Article content
Article content
The Strait of Hormuz has been virtually impassable since the conflict began in late February, driving up energy prices after flows of crude, natural gas and oil products were cut off. The war has raised fears about an inflation crisis, with the International Energy Agency calling it the biggest supply shock in history.
Article content
The conflict has led to the United Arab Emirates deciding to leave OPEC next month after six decades of membership. The UAE said the shortage caused by the war will require agility to respond to market demands without being constrained by the collective decision-making process by the wider group.
Article content
The US is ramping up pressure on Iran via other means. The Treasury Department’s Office of Foreign Assets Control has warned financial institutions of sanctions risks on Chinese oil refiners — mostly independent processors in Shandong province — over ties with the Islamic Republic.
Article content
On Friday, the US sanctioned Hengli Petrochemical (Dalian) Refinery Co., one of China’s largest private refiners, over links to Iran, a move that risks tensions between Beijing and Washington ahead of an expected summit between the country’s leaders. Hengli said it had never engaged in any trade with Iran.
English (US)