Oil prices closed slightly higher Monday (local time), even as the United States rejected Iran's "7-day plan" — a proposal that included reopening the Strait of Hormuz — with analysts pointing to lingering hopes for negotiations between the two sides as the key support factor.
Brent crude futures for November delivery settled up 0.92 percent at $105.28 per barrel on the London ICE Futures Exchange. West Texas Intermediate futures for October delivery closed up 0.21 percent at $92.60 per barrel on the New York Mercantile Exchange.
Market participants spent much of the session parsing conflicting signals around a potential US-Iran truce and the possible reopening of the Strait of Hormuz.
Prices had surged more than 4 percent during trading after President Donald Trump rejected Iran's 7-day plan, but pared gains as expectations grew that the two sides could still hold talks.
Iran had earlier presented the United States with the 7-day plan, which called for lifting the maritime blockade on Iran, releasing frozen Iranian funds and granting sanctions exemptions on Iranian oil, while also proposing a halt to hostilities on all fronts, including in Lebanon.
Trump rejected the proposal but said in an interview with Axios on Monday that Iran "wants to make a deal" and that he expects further talks with Tehran this week.
Separately, reports emerged Monday that Qatar, acting as a mediator, plans to hold separate meetings with both American and Iranian officials. Reuters, citing an anonymous official, said Qatar is scheduled to meet with Iranian Foreign Minister Abbas Araghchi and US representatives separately in New York on Monday or Tuesday.
yckim6452@heraldcorp.com
