- Brent crude oil fell 0.8% to $108.09 per barrel as markets reacted to a potential diplomatic breakthrough in the Middle East.
- Mediators from Pakistan, Egypt, and Turkey have proposed a 45-day ceasefire to reopen the Strait of Hormuz, a critical maritime chokepoint.
- The diplomatic push comes as President Donald Trump issued a Tuesday night deadline to target Iranian power plants and bridges if the waterway remains closed.
Energy markets saw a modest retreat on Monday as traders weighed a newly proposed ceasefire framework against increasingly aggressive rhetoric from the White House. International benchmark Brent crude dipped to $108.09 per barrel, while West Texas Intermediate (WTI) fell to approximately $110.14. The decline reflects a cautious optimism that a multilateral mediation effort led by Pakistan could prevent a massive escalation in the U.S.-Iran conflict, which has already seen oil prices surge nearly 50% over the last five weeks.
The ceasefire proposal, reportedly delivered late Sunday to U.S. Mideast envoy Steve Witkoff and Iranian Foreign Minister Abbas Araghchi, calls for a 45-day cessation of hostilities. The primary objective is the immediate reopening of the Strait of Hormuz, through which roughly 20% of global oil supply flows. While regional officials suggest the proposal offers a “structured process” for peace, internal reports indicate that Tehran has yet to formally sign on, citing resistance to externally imposed deadlines.
The urgency of the negotiations is underscored by a Tuesday night deadline set by President Trump. In a series of social media posts, the President warned that if the strait is not opened by tomorrow evening, the U.S. military will initiate strikes on civilian infrastructure, specifically targeting power plants and bridges. “Tuesday will be Power Plant Day and Bridge Day, all wrapped up in one, in Iran,” Trump stated, characterizing the potential strikes as a necessary response to the energy blockade.
Analysts suggest that while the OPEC+ group recently approved higher output quotas to mitigate global shortages, the structural damage to energy infrastructure remains a long-term risk. For now, the market’s slight dip suggests a “wait-and-see” approach, though volatility is expected to spike as the Tuesday deadline approaches. “The word uncertainty is paramount,” noted Jay Woods, analyst at Freedom Capital Markets. “Last year it was tariffs; this year it’s the Iranian War and the threat to global energy security.”
“There will be nothing like it!!! Open the Fuckin’ Strait… or you’ll be living in Hell — JUST WATCH!” President Donald Trump wrote in a Truth Social post regarding the Tuesday deadline.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
