Oil prices surpass $100 as US-Iran peace talks remain stalled
What's the story
Oil prices have witnessed a surge for the fourth consecutive day, as peace negotiations between the US and Iran remain stalled. The Brent crude oil price rose nearly 13% in the last three sessions, trading close to $102 per barrel on Thursday. The ongoing conflict has rattled energy markets since it began in February-end, with near-closure of the Strait of Hormuz causing a sharp drop in flows from major Persian Gulf producers.
Tensions escalate
US naval blockade a violation of ceasefire: Iran
The US has enforced a naval blockade on ships traveling to and from Iran's ports, in an attempt to exert pressure on the Islamic Republic. However, this move has been criticized by Iranian Foreign Minister Abbas Araghchi as a violation of the ceasefire. Despite the ongoing tensions, US President Donald Trump said that the truce agreed upon on April 7 would remain in place indefinitely while Washington waits for Iran's new peace proposal.
Diplomatic impasse
Iranian President says threats are obstacle to diplomacy
Iranian President Masoud Pezeshkian has welcomed talks but said that "blockade and threats are main obstacles" to diplomacy. The country is keeping the Strait of Hormuz closed to almost all other international traffic, with its gunboats firing on commercial ships in the strait on Wednesday. Since the US naval blockade was imposed earlier this month, American forces have seized and boarded ships while turning back dozens of others.
Market response
Traders eye US oil inventory data
Traders are also keeping an eye on US oil inventory data released by the Energy Information Administration on Wednesday. The data showed declines across all major refined product categories, further influencing the market. The world has been looking to US supplies to offset disruptions from the Middle East, with heightened demand pushing total oil and fuel exports to a new record.