Global crude oil prices declined on Monday, with Brent crude falling to $92.11 per barrel and the US benchmark, West Texas Intermediate (WTI), dropping to $86.28.
Brent recorded a 6.32 per cent decline, while WTI lost 5.01 per cent as of 9:31 p.m. WAT, extending a downward trend that saw the international benchmark record a 16 per cent drop in the previous week.
The Guardian reported that the latest market movement came amid diplomatic efforts involving the United States and Iran, following a proposal aimed at restoring commercial shipping through the Strait of Hormuz.
The proposal reportedly provides for Iran to reopen the waterway and stop attacks on Gulf vessels, while Washington would end its naval and economic blockade and release $8 billion in Iranian assets held in Qatar.
However, the proposed terms remain unconfirmed by both countries. Disagreements over Iran’s nuclear programme and other conditions have also remained unresolved, despite statements by US President Donald Trump indicating the possibility of an agreement.
Iranian Foreign Minister Abbas Araghchi said Tehran could reopen the Strait of Hormuz within two days if the war ended on all fronts. The waterway previously handled about 20 million barrels of crude oil and petroleum products daily before the conflict.
