Oil prices held firm at elevated levels as the US assessed a fresh proposal from Iran, even as the Strait of Hormuz remained effectively shut, keeping global supply concerns intact. Brent crude for June settlement was unchanged at $108.23 a barrel, with the more active July contract at $101.95, while WTI for June delivery rose 0.3% to $96.65. The benchmarks have climbed sharply in recent sessions as traders price in prolonged disruption.
Despite a ceasefire largely holding since early April, the dual blockade enforced by both Iran and the US has reduced traffic through Hormuz to near zero. The chokepoint, which typically carries about a fifth of global oil and LNG flows, has seen an unprecedented drop in shipments. The near-halt in transit has choked off crude and fuel supplies, pushing energy prices higher and raising concerns about a broader inflation shock across economies.
ALSO READ: A New Opening? Iran FM Says Considering Trump Team's 'Request' For Talks
Proposal On The Table
US President Donald Trump convened a high-level meeting to evaluate Tehran's proposal, though Washington continues to insist on strict red lines — particularly around Iran's nuclear ambitions. Iran has indicated it may be open to ending the conflict if the US lifts its naval blockade, agrees to a new legal framework governing Hormuz transit, and provides assurances against future military action.
However, US officials remain skeptical, signalling that negotiations could stretch on as both sides remain far apart on core demands.
The blockade, which began earlier this month, has already forced dozens of vessels to turn back. Tankers linked to Iran have altered routes mid-journey, underscoring the risks to global supply chains. At the same time, Iran is facing mounting storage constraints, with limited capacity to hold unsold crude. Analysts warn this could force production cuts, tightening supply further.
Comments from US Secretary of State Marco Rubio suggest Washington is unwilling to accept any arrangement that leaves Iran with control over Hormuz, adding another layer of complexity to negotiations.
ALSO READ: Hormuz Row: Iran Fires Warning Shots At Tanker Near Oman; Indian Crew Safe
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