Global Crude Oil Prices Rise Amidst US-Iran Talks Uncertainty

Washington DC. Crude oil prices have further increased in the global market.

Concerns about oil supply in the global market have resurfaced and prices have risen as talks to end the war between the United States and Iran appear to be weakening.

On Tuesday, the international benchmark Brent crude oil price rose by 86 cents per barrel to 105 dollars 7 cents on the ICE Exchange's Comex division in London. In the Comex division of the New York Mercantile Exchange, US West Texas Intermediate (WTI) rose by 99 cents to 99 dollars 6 cents. Both indicators had also risen by approximately 2.8 percent on Monday.

US President Donald Trump said on Monday that the ceasefire with Iran had reached a defensive stage. According to him, there are serious disagreements on issues such as a ceasefire on all fronts, lifting the US naval blockade, resuming Iranian oil sales, and war reparations.

Iran has reiterated its claim of sovereign rights over the Strait of Hormuz, through which about one-fifth of the world's oil and liquefied natural gas is transported.

According to Subro Sarkar, head of the energy sector at DBS Bank, a financial services provider in Singapore, the hope for an early peace agreement is weakening. He warned that oil prices could rise further if an agreement is not reached by the end of May.

A Reuters survey showed that the production of OPEC, the group of major petroleum exporting countries, fell to its lowest level in two decades in April, and exports were cut due to disruptions in the Strait of Hormuz region.

Analysis suggests that oil prices could fall by 8 to 12 dollars if a peace agreement is reached. However, if tensions rise or the threat of a blockade returns, Brent crude prices are estimated to rise above 115 dollars again.