Oil prices stabilize as traders focus on reports pushing for a ceasefire in Iran

While the market is watching a report about the Middle East pushing for a ceasefire, oil prices have stabilized. Earlier, U.S. President Donald Trump issued a fresh ultimatum to Iran over restoring navigation through the Strait of Hormuz.

Brent crude futures were trading below $110 per barrel, giving back most of their gains from earlier in the day; West Texas Intermediate crude futures were hovering around $112 per barrel. Citing people familiar with the matter, Axios reported that the United States, Iran, and regional intermediaries are discussing a potential 45-day ceasefire arrangement, which could potentially help bring the war to a permanent end. However, the report said the likelihood of reaching some agreement within the next 48 hours is low.

The war has thrown the crude oil market into turmoil and triggered unprecedented supply shocks, and it is evolving into a global energy crisis. Oil prices and refined product prices have surged significantly, fueling inflationary pressures, weakening economic growth, and increasing the burden on businesses and consumers.

Over the weekend, before Axios’s report came out, Trump threatened in a series of social media posts that if navigation through the Strait of Hormuz cannot be restored, he would make Iran face “hell” by striking power plants and other infrastructure. Tehran rejected these demands, and the waterway remains closed to the vast majority of vessels.

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Editor: Wang Yongsheng