Brent crude fell by $3.96, or 3.8 percent, to $100.53 per barrel, while US WTI crude fell by $3.57, or 3.9 percent, to $88.78, Reuters reports.
According to an Iranian official, Pakistan has submitted the American proposal to Tehran, and Pakistan or Turkey could host talks on de-escalating the conflict. Iran, however, denied that direct negotiations had taken place.
Analysts at Ritterbusch and Associates said the drop in prices was linked to the US plan, but that the market remains vulnerable to further spikes until concrete progress is shown.
The war has almost stopped the transportation of oil and LNG through the Strait of Hormuz. The International Energy Agency (IEA) assessed that it was the largest oil supply disruption in history. It is estimated that about 20 million barrels were lost per day, or 500 million barrels in 25 days.
The Gulf Arab states have warned the UN that Iran’s attacks on infrastructure represent an existential threat, and the UN High Commissioner for Human Rights has assessed that they could constitute war crimes.
To compensate for the disruptions in Hormuz, Saudi Arabia increased exports through the Red Sea port of Yanbu to nearly four million barrels per day, a sharp increase compared to the period before the outbreak of war.
(Vijesti.ba / FENA)
