Oil prices remained volatile on Wednesday, as the US and Iran clashed over what terms might bring the conflict in the Middle East to an end.
Brent crude rose to $101 a barrel at midday in the US before falling back to $98 as President Donald Trump spoke optimistically about the possibility of reaching a deal.
But Iranian media on Wednesday cited leaders criticising the US peace proposal.
They presented their own terms for a ceasefire, including international recognition of Iran’s “sovereign right” to control the Strait of Hormuz, a key route for global oil and gas supplies.
On Wednesday, White House press secretary Karoline Leavitt maintained that US attacks were working to convince the Iranian regime to negotiate.
She said failure to reach an agreement would be a result of the Iranian regime refusing “to understand they have already been defeated”.
Distance between the two sides could prolong a conflict that has rocked financial markets and sent energy prices soaring since the US and Israel attacked Iran on 28 February.
Iran has effectively blocked the Strait of Hormuz since the start of the war, cutting off a waterway that usually sees about 20% of the world’s oil and liquefied natural gas pass through each day.
It has generated a supply crisis, forcing countries in Asia – the main destination for oil from the Gulf – to take unusual measures to try to secure oil and gas supplies.
Philippine President Ferdinand Marcos declared a state of emergency in his country, which imports 98% of its oil from the Gulf, while on Tuesday, the boss of energy giant Shell said oil shortages could hit Europe next month.
