WASHINGTON (dpa-AFX) - Extending the gains from yesterday, crude oil has surged on Thursday as concerns of supply disruptions continue despite upcoming peace talks between the U.S. and Iran to end the month-long gulf war.
WTI Crude Oil for May month delivery was last seen trading up by $3.45 (or 3.78%) at $94.74 per barrel.
In the conflict between the U.S., Israel and Iran that started on February 28, a two-week ceasefire was agreed by both nations last week which ends on April 22.
Last Saturday, a team of high-level officials led by Vice President JD Vance met with Iranian counterparts in Pakistan to arrive at a framework for discussions to end the war.
After nearly 20 hours of consultations, the teams returned without any breakthrough development.
Calling the initiative 'a failure,' U.S. President Donald Trump ordered U.S. naval forces to block ship traffic to and from Iranian ports across the Strait of Hormuz with an aim to cripple Iranian oil exports and compel Iran to accede to U.S. demands.
Even though Iran threatened severe retaliation, U.S. naval forces have enforced a complete blockade.
With renewed supply constraints returning to the market, oil prices soared, raising inflationary concerns.
Through a couple of interviews over the past two days, Trump confirmed that a U.S. team will be heading to Pakistan again to re-negotiate with Iran and stressed that an extension of the two-week ceasefire would not be necessary.
Yesterday, Pakistan's army chief Asim Munir held talks with Iranian officials in Iran ahead of the next round.
Despite Trump's optimism about an amazing outcome, experts are doubtful if the talks would yield fruitful results.
Both the U.S. and Iran are vying to take control of the Strait of Hormuz. While the U.S. wants Iran to give up its nuclear ambitions, hardliners in the Iranian regime are likely to decline.
The month-long war has caused severe damage to infrastructure in Iran aside from the huge loss of lives, and now Iran is seeking compensation as well as the release of $6 billion in assets frozen by the west.
With these contentious issues, experts feel that resolving the crisis may not be as easy as projected.
U.S. Secretary of War Pete Hegseth stated that if Iran does not agree to make a deal with the U.S., U.S. forces would restart combat.
Aside from the U.S.-Iran conflict, Israel's attacks on Lebanon targeting Hezbollah militants added to the tension.
Israeli airstrike destroyed a bridge connecting southern Lebanon to the rest of the country.
A U.S-mediated meeting between Israel and Lebanon envoys concluded without any breakthrough news.
However, Trump recently announced that both nations have agreed for a 10-day ceasefire.
Meanwhile, a resolution in the U.S. Senate challenging Trump's authority to declare war with Iran failed.
Amid these developments, the Hormuz strait remains shut for traffic, and supply-related concerns continue to linger among traders, supporting oil prices on the upside.
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