Oil price gains as Donald Trump extends deadline again for Iran to open Strait or face power plant strikes
Oil prices jumped again overnight as US President Donald Trump gave mixed messages on negotiations between Washington and Tehran.
Benchmark Brent Crude prices climbed to $US101.30 on Friday morning in Australia after US President Donald Trump said he would extend a pause on attacking Iran’s energy facilities by 10 days, to April 6, at the request of Iran’s government.
The announcement of a 10-day pause came after Wall Street fell heavily again on Thursday, as rising oil prices also signalled traders doubt a peace deal and reopening of the Strait of Hormuz are close in the Middle East.
Australian equity futures point to a near 1 per cent fall at the open as the flagship S&P/ASX 200 Index heads for its fourth straight week of losses and a 10 per cent fall equal to a technical correction since the Middle East war erupted.
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By continuing you agree to our Terms and Privacy Policy.“Crude oil rallied after signs of negotiations gave way to rising tensions in the Middle East conflict. President Trump threatened Iran with intensified military action, with both sides seemingly miles apart in talks over a ceasefire,” said ANZ Bank’s economics team. “Oil prices rose after Trump (earlier) said that he doesn’t know if the US is willing to work with Iran on a deal.”
On Thursday morning in his Truth Social post, Trump claimed talks with Iran are ongoing and going “very well” despite “erroneous statements to the contrary.
The original pause on attacks on Iran’s energy infrastructure was due to end on Friday evening in the US.
Precious and base metals all dropped again overnight. Gold dropped nearly 4 per cent to $US4407 an ounce, and silver fell 6.2 per cent to $US68.22 an ounce.
The Australian dollar also fell 0.9 per cent to buy $US68.9 cent.
More to come.
