Oil prices climbed sharply after Iran's government denied reports of direct talks with the United States, dashing hopes for a peaceful resolution to the ongoing conflict. Iranian Foreign Minister Abbas Araghchi stated in an interview with state media that Tehran is not engaged in direct negotiations with Washington and has "no intention of negotiating for now," highlighting the persistent regional tensions.
Futures for Brent crude, the international benchmark, rose nearly 2% on Thursday to top $104 per barrel. This increase followed a brief easing of prices on Wednesday after reports that the US regime under President Donald Trump had allegedly shared a 15-point plan for ending the war. Asian stock markets opened lower on Thursday, with Japan's Nikkei 225, South Korea's KOSPI, and Hong Kong's Hang Seng Index all recording losses.
Iran's effective closure of the Strait of Hormuz, a conduit for one-fifth of global oil supplies, and its attacks on energy facilities across the Middle East have prompted a surge in energy prices worldwide. According to maritime intelligence firm Windward, daily transits through the strait have all but collapsed since the conflict began, with only four vessels tracked on Tuesday compared to an average of 120 daily transits prior to the war.
Oil prices are up more than 40% compared to before the US and Israeli strikes on Iran on February 28, leading numerous countries to implement fuel rationing and other energy conservation measures. Market-watchers say prices are likely to rise further until shipping can freely traverse the strait, despite efforts by countries to bolster supply by tapping emergency stockpiles in coordination with the International Energy Agency.
White House Press Secretary Karoline Leavitt warned on Wednesday that Iran would be "hit harder" than ever before if it did not accept military defeat. While Iranian authorities have repeatedly claimed that the strait is open to ships not aligned with its enemies, actual transit remains severely restricted, exacerbating the global energy crisis and raising concerns about prolonged economic instability.
Source: www.aljazeera.com