International
Oil Prices Rise as Qatar Pushes for US-Iran Talks to Reopen Hormuz
Brent crude climbed above $107 during Monday trading before settling at $105.28 as Qatar pursued renewed mediation between Washington and Tehran.
Oil prices rose on Monday as Qatar stepped up diplomatic efforts to broker discussions between the United States and Iran aimed at ending the conflict and reopening the Strait of Hormuz.
Brent crude futures climbed by more than $4 a barrel during early trading, reaching around $108 before easing. The benchmark eventually settled at $105.28 a barrel, up 0.9 per cent, while US West Texas Intermediate crude rose 0.2 per cent to $92.60.
The price movement came amid concerns over continued disruptions to oil and gas shipments through the Strait of Hormuz, one of the world's most important energy routes.
Qatari mediators were expected to hold separate discussions with Iranian Foreign Minister Abbas Araqchi in New York and with US officials as part of a renewed diplomatic effort to end the conflict.
According to Reuters, the discussions were expected to focus on an amended version of a seven-day proposal Iran presented during the United Nations General Assembly.
Iran's proposal included an end to hostilities, the unfreezing of Iranian assets, the lifting of US sanctions on Iranian oil and the removal of the US blockade on Iranian ports.
In return, Tehran proposed reopening the Strait of Hormuz and resuming negotiations over its nuclear programme.
US President Donald Trump rejected the initial proposal, saying Iran was seeking an agreement because of the economic pressure it was facing. However, he indicated that US representatives could continue discussions with Tehran through mediators.
Iranian Foreign Minister Abbas Araqchi remained in New York and was expected to meet Qatari mediators to discuss the latest proposals. Iran's semi-official ISNA news agency said the meeting would examine the latest proposals and positions concerning the conflict.
Qatar subsequently said it hoped its shuttle diplomacy could help produce a breakthrough, despite Trump's rejection of reports that Washington was prepared to ease sanctions or release frozen Iranian funds in exchange for concessions.
The diplomatic activity has been closely watched by oil markets because of the importance of the Strait of Hormuz to global energy supplies. Disruptions to shipping through the waterway have contributed to higher oil prices and increased market volatility.
However, oil and LNG traffic through the strait has shown signs of recovery in recent weeks. Reuters reported that Saudi and UAE crude exports rose sharply in September, while Qatar-linked LNG vessels also resumed more visible transits through the waterway.
The continued uncertainty over the conflict, the future of the Strait of Hormuz and the prospects for a diplomatic settlement is expected to keep energy markets sensitive to developments between Washington and Tehran.
