foreign-policy
Iran War Keeps Oil Near Multimonth Highs as Hormuz Risks Persist, Diplomacy Stalls and Heating Costs Rise
Oil prices rebounded after a volatile session in which futures hit multimonth highs before settling lower on hopes for US-Iran diplomacy. Brent is near a five-month high, Reuters reports. The Wall Street Journal reports renewed threats to Hormuz shipping and attacks on Saudi Arabia, but says more oil is leaving the Persian Gulf than before the war. Iran told Pakistan's army chief there will be no talks with Washington until its demands are met, Reuters reports. Iran's foreign minister told the Financial Times Iran is ready for diplomacy but will defend itself. President Trump said the US is winning and 'can leave right now.' Secretary of State Marco Rubio accused Iran of 'Nazi U-boat tactics' against shipping. Other reports say Indian Oil will trim Middle East imports, Iraq closed the Sheeb border crossing with Iran, Saudi Arabia postponed 'Davos in the Desert,' and a Trump envoy told Gulf allies the US cannot guarantee their security forever.
Feb 28Trump announced major combat operations against Iran.
Oct 19Iran said its Hormuz reopening offer stands as Russia's envoy visited Tehran.
Oct 20Oil futures hit multimonth highs, then settled lower; Trump said the US can leave right now.
Oct 21Oil rebounded as Hormuz shipping risks persisted; Iran's foreign minister said Iran is ready for diplomacy.
Why It Matters
Higher oil prices feed into fuel and heating bills as winter nears, and the Financial Times reports record heating oil prices in the US north-east, pushing the region to reconsider its opposition to natural gas pipelines. Shipping through Hormuz remains risky, and buyers such as Indian Oil are adjusting their purchases. Iran says it will not talk to Washington until its demands are met, while also saying it is ready for diplomacy, and markets are reacting to the headlines.
What's Next
Confidencemoderate
Agreementmixed