Oil Erases Gains as Iran Proposes New Hormuz Exit Strategy

After trading higher for most of the day, Brent crude oil futures (BZ) turned negative after Reuters reported that Iran is considering letting ships safely pass through the Omani side of the Strait of Hormuz.

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Iran has offered the proposal as a negotiation chip in talks with the U.S., according to a source familiar with the matter. U.S.-Iran talks unraveled last weekend after the two sides were unable to resolve differences over the waterway, which handles roughly 20% of global oil flows.

Oil Shock Persists as U.S.-Iran Near Ceasefire Extension

Hormuz has remained at a near standstill since the beginning of the war on February 28, squeezing oil supply and sending prices higher. Hundreds of tankers and ships are still stuck inside the Persian Gulf as negotiations continue.

Pakistani mediators are working to secure another two-week ceasefire past the deadline of April 21, with the Associated Press reporting that the U.S. and Iran have reached an “in principle agreement” for an extension.