Iran's Foreign Minister Abbas Araghchi reiterated that the reopening of the Strait of Hormuz is contingent upon the fulfillment of Iran's conditions, which include halting U.S. military actions and releasing Iranian assets. This statement follows U.S. President Donald Trump's rejection of Iran's proposal for negotiations.
The Strait of Hormuz is a critical passage for approximately 20% of the world's oil supply, and any disruption could significantly affect global oil prices. Recent discussions between the U.S. and Iran have not yielded a formal response from the U.S. side, indicating a stalemate. Meanwhile, the Iranian military has claimed to have captured an American underwater drone, further escalating tensions.
Oil prices have fluctuated in response to these developments, with West Texas Intermediate dropping 2.3% to $92.41 per barrel and Brent crude declining 2.1% to $104.32. Year-to-date, WTI is up nearly 61%, while Brent is over 71% higher, reflecting the ongoing volatility in the market due to geopolitical factors