Oil prices have witnessed a sharp slide with hopes of positive deal between the United States and Iran that could bring an end to the USIsrael war against the Gulf nation. US Secretary of State, Marco Rubio said negotiators had a “pretty solid thing on the table” and an agreement to end the conflict might be reached on Monday.
Global oil benchmark early last week saw the Brent falling 5.5 percent to $97.90 a barrel, and remained around $97.70 a barrel in the afternoon. US President Donald Trump said the negotiations were “proceeding nicely” but added it would either be “a great deal for all or no deal at all.”
While Iran says progress has been made, a government spokesman added that a deal was “not imminent.” President Trump had previously said the deal would include the reopening of the key Strait of Hormuz shipping route, without giving further details.
The Strait of Hormuz, through which around a fifth of the world’s oil and liquefied natural gas (LNG) usually passes, has been effectively closed since the conflict started on 28 February. Rubio on Monday said the talks were “still a work in progress.”
“As I said, you know, we thought we might have some news last night,” Rubio said in the Indian capital, Delhi. His comments came after Trump said he had instructed negotiators “not to rush into a deal”, after earlier suggesting one was close.
Speaking after Rubio’s comments, Iran’s foreign ministry spokesman, Esmail Baqai, said agreement has been reached on a “large portion of the issues under discussion”. “But to say that this means the signing of an agreement is imminent – no-one can make such a claim,” he added.
Trump on Saturday declared that he had had a “very good call” with the leaders of Saudi Arabia, the United Arab Emirates, Qatar and others about a “Memorandum of Understanding pertaining to PEACE”.
“An agreement has been largely negotiated, subject to finalisation between the United States of America, the Islamic Republic of Iran, and the various other Countries, as listed. “Final aspects and details of the deal are currently being discussed, and will be announced shortly,” Trump said on his social media handle.
He also said he had had a call on Saturday with Israeli Prime Minister Benjamin Netanyahu, which had gone “very well”.
