Oil prices jumped on Tuesday, climbing back above $110 per barrel, amid a lack of progress in re-opening the key Strait of Hormuz.
Meanwhile tech stocks took a hit and investors turned their attention to corporate earnings and the outlook for interest rates.
The White House has refused to say if US President Donald Trump is inclined to accept Iran’s latest proposals to end the two-month-old conflict and re-open the crucial waterway, which would reportedly put off talks on Tehran’s nuclear programme.
Qatar on Tuesday cautioned against the possibility of a “frozen conflict” in the Gulf, as talks between the US and Iran for a peace deal appeared at an impasse.
Oil prices rallied, with Brent crude for June delivery rising 2.8 percent to $111.26 a barrel.
The benchmark US contract, WTI for June delivery, rose 3.4 percent to $99.62 per barrel.
Hopes for a deal had been rising going into last weekend but Trump dashed them on Saturday by scrapping a planned trip by his envoys Steve Witkoff and Jared Kushner to Islamabad.
“Right now, the market is not optimistic about the chance of a deal to reopen the Strait due to Iran’s request to push discussions about nuclear disarmament into the future,” said Kathleen Brooks, research director at XTB trading platform.
Meanwhile, the United Arab Emirates announced it will withdraw from the OPEC and OPEC+ oil cartels on May 1, calling it a strategic decision by the major producer.
Rystad Energy analyst Jorge Leon said the UAE’s move is significant as it is, alongside Saudi Arabia, one of the few nations with significant spare production capacity.
Source: Insider Paper
