Oil prices dip in Asian trade amid hopes of US-Iran peace talks

New York. Oil prices saw a slight decline in Asian trading on Tuesday. The drop follows reduced concerns over energy supply disruptions due to the possibility of new peace talks between the Donald Trump administration and Iran.

International benchmark Brent crude fell by approximately 1 percent to $98.04 per barrel on Tuesday, while West Texas Intermediate, traded in the US market, also dropped by 1.7 percent to $97.04.

US President Trump stated that Tehran has reached out to Washington regarding a potential deal. Speaking to reporters outside the White House, he said, “The other side has reached out to us, they want to make a deal.” Previously, after talks between the US and Iran failed, Trump had ordered a blockade on Iranian ports, which had pushed oil prices above $100.

On the other hand, according to a report by The New York Times, Iran had proposed halting uranium enrichment for five years, but the US reportedly rejected the proposal, demanding a 20-year period. Although various proposals regarding halting nuclear activities were exchanged between both sides during talks in Pakistan, an agreement remains distant. However, those discussions have signaled a potential path for a peace deal, and the possibility of a second round of face-to-face talks has emerged.

Meanwhile, Asian stock markets have seen a modest rise. Japan's Nikkei 225 index rose by 2.6 percent, while South Korea's KOSPI index climbed by more than 3 percent. Asian countries dependent on energy supplies from the Gulf region have been the most affected by this conflict. In particular, the Strait of Hormuz, through which nearly 20 percent of the world's oil and gas is supplied, has become the center of tension.

US Energy Secretary Chris Wright has stated that since the waterway remains in a near-closed state, oil prices could rise further over the next few weeks. According to him, “Until shipping through the Strait of Hormuz becomes smooth, energy prices will remain high, and only then might we see the peak of prices.”