Crude Oil Price Update: Crude oil prices fell, Brent slipped below $95, know the Pakistan connection?

Business Desk – Crude Oil Price Update: Oil prices fell amid signs that Iran would join talks with the US in Islamabad before the ceasefire deadline. After gaining 5.6% on Monday, Brent crude fell 1.1% to $94.44 per barrel.

According to people familiar with the plan, they declined to be identified. Iran is sending a team to the Pakistani capital. However, it is still not clear who will lead this delegation. Earlier, Tehran had indicated that it was hesitant to participate in further peace talks with the US.

Vice President J.D. Vance is scheduled to leave later Monday to resume talks, “either Tuesday night or Wednesday morning,” Donald Trump said in a phone interview on Monday. The US President further said that there is “very little likelihood” that he will extend the ceasefire, which is set to expire “Wednesday evening, Washington time”.

Oil prices have fluctuated in recent days due to rapidly changing assessments about the status of negotiations and whether ships will be able to pass through the Strait of Hormuz. This waterway typically serves as a transit route for about one-fifth of the world’s crude oil supply.

The conflict in the Strait of Hormuz threatens to deepen the global energy crisis and represents just one of many unresolved issues between Iran and the US. This list also includes the nuclear capabilities of the Islamic Republic and Israel’s invasion of Lebanon.

During Monday’s session, Trump made conflicting statements regarding the timing and feasibility of peace talks. Oil prices rose further after he announced that the US would block the strait to shipping bound for Iran until a final deal is reached.

Meanwhile, maritime traffic in the Strait of Hormuz has almost completely come to a standstill. The crisis escalated over the weekend when the US Navy seized an Iranian ship, while Islamic Republic forces fired on the ships and re-established control of the strait.

Chinese President Xi Jinping on Monday called for an immediate ceasefire and the resumption of normal transit through the waterway, according to Foreign Ministry details of a phone conversation with Saudi Crown Prince Mohammed bin Salman.

Citigroup Inc. According to , if traffic on the waterway remains halted for another month, oil prices could rise to $110 per barrel. According to Fatih Birol, executive director of the International Energy Agency, global energy markets could remain unstable for two years due to this conflict.