WASHINGTON (dpa-AFX) - Crude oil prices have skyrocketed on Monday following reports of the U.S. and Iran exchanging attacks while the U.S. is yet to endorse a negotiated settlement to end the war.
WTI Crude Oil for July month delivery was last seen trading up by $4.64 (or 5.31%) at $92.00 per barrel.
The U.S.-Israel versus Iran war which began on February 28 is in the fourth month and entered day number 94 today.
Since the war began on February 28, the Strait or Hormuz has been effectively closed for oil and trade traffic as a result of which crude oil prices have skyrocketed.
A deal continues to elude despite assurances from U.S. President Donald Trump, keeping the reopening of the strait largely uncertain.
Last week, negotiators from the U.S. and Iran arrived at a framework proposal to commence negotiations on all critical issues and end the war.
According to Axios, the salient features of the draft included extending the ceasefire currently in place for another 60 days during which negotiations on Iran's nuclear ambitions will take place.
Besides this, the agreement would allow immediate reopening of the Strait of Hormuz by Iran. Prior to that, Iran should clear all the sea mines it had placed across the strait.
On Friday, Trump announced that he would make a final call after discussing with officials in the White House Situation Room. No significant announcement came, however.
Through his social media platform Truth Social, Trump clamed that Iran is in need of a deal which will also be a good one for the U.S. and added that things will work out well in the end.
In another message, Trump stated that the currently negotiated deal would not permit Iran to have a nuclear weapon.
Today, U.S. Central Command stated that U.S. forces based in Kuwait intercepted two ballistic missiles of Iran.
Amid this, CBS News reported citing a source privy to the negotiations that Trump had made some significant edits in the formulated U.S.-Iran Memorandum of Understanding.
Trump's changed reportedly focus around the Strait of Hormuz as well as on the removal of highly enriched uranium currently Iran has concealed.
Elsewhere in the Middle East, despite an ongoing U.S.-brokered ceasefire between Israel and Lebanon, Israeli forces captured Beaufort's Castle fortress in southern Lebanon in an expanded military offensive targeting Hezbollah militants.
This follows Israeli Prime Minister Benjamin Netanyahu's Sunday order to the forces to move deeper into Lebanon.
Today, Iran's Tasnim news agency reported that Iran's team of negotiators have suspended the exchange of messages with the U.S. due to the attacks on Lebanon and added that the regime was planning to open other fronts in the war, indicating an attack on Bab el-Mandeb strait.
With no end in sight to the crisis and renewed supply disruption concerns for an indefinite period, crude oil prices earlier catapulted as much as 7% but retreated mildly after Trump messaged that talks are continuing at a rapid pace with Iran.
Trump also added that he had a telephone call with Netanyahu as well as Lebanon's Hezbollah group and confirmed that no Israeli troops will go to Beirut. Trump reaffirmed that both sides have agreed to stop all mutual attacks.
The U.S. dollar index was last seen trading at 99.14, up by 0.24 points (or 0.24%) today.
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