Global oil prices are fluctuating as investors interpret Iran’s mixed response to a US peace proposal. The proposal aims to end a month-long conflict threatening the Strait of Hormuz. This channel carries approximately one-fifth of the global crude supply.
Iranian officials publicly dismissed the plan with counter-demands while senior officials confirmed they are still reviewing the terms. Oil prices fell roughly 2% on March 25 following initial optimism for a deal. West Texas Intermediate futures rose about 1% in early trading on March 26 as skepticism grew.
The market remains volatile as traders weigh a potential diplomatic breakthrough against President Trump’s threat to target Iranian energy infrastructure.