The price you pay for petrol next month may depend on what happens in a Swiss conference room this week.
US and Iranian negotiators met in Geneva on 17-18 February for a second round of talks over Tehran's nuclear programme. While diplomats exchanged proposals inside, Iran's Revolutionary Guard conducted live-fire exercises in theStrait of Hormuzoutside, temporarily shutting down sections of the waterway. The timing was no accident.
About 20% of the world's oil, roughly 20 million barrels per day, moves through the Strait of Hormuz, according to the US Energy Information Administration. Block that chokepoint, even briefly, and prices spike. Fast.
In the UK, petrol currently sits at about 131.6p per litre, the lowest since summer 2021, according to fuel tracking data. But that number can change quickly. WhenTrumpthreatened military action against Iran in early February,Brent crudejumped over 3% in a single session.
On Tuesday, oil moved the other way. Brent crude fell 1.79% to $67.42 (£49.75) per barrel after Iran's foreign minister, Abbas Araghchi, announced that both sides had reached 'a general agreement on guiding principles' for a potential deal. West Texas Intermediate dropped 0.89% to $62.33 (£45.99) per barrel.
Good news? Maybe. But don't fill up your car with optimism just yet.
President Donald Trump has warned Iran of 'potential consequences' if no deal materialises. He's backed those words with hardware: a second aircraft carrier strike group, plus over 50 fighter jets moved to the region in the past 24 hours, according to Axios.
'I'll be involved in those talks — indirectly — and they'll be very important,' Trump told reporters aboard Air Force One on Monday, according to NPR. 'Typically, Iran's a very tough negotiator.'
Tehran isn't backing down either.
Supreme Leader Ayatollah Ali Khamenei dismissed the American position outright. 'The Americans say, let's negotiate over your nuclear energy, and the result of the negotiation is supposed to be that you do not have this energy,' hewrote on social mediaduring the talks. 'If that's the case, there is no room for negotiation.'
Source: International Business Times UK
