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Oil prices today: Oil trades sideways as traders look for Middle East peace deal

Markets are still being driven by headlines around the Middle East war.

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Tom Richardson
The Nightly
Treasurer Jim Chalmers warns Australia could face an economic crisis comparable to the GFC as fuel prices surge 67% due to Middle East conflict disrupting supply through the Strait of Hormuz.

Oil traded sideways on Thursday morning as traders digested news that Iran has rejected a 15-point US ceasefire offer and laid out its own list of conditions to end the Middle East war.

The mixed headlines left benchmark Brent Crude prices trading sideways at $US98.05 a barrel. Wall Street traded slightly higher as investors hedged their bets on the likelihood of the war escalating into next week as the US sent up to 4000 additional marines to the region. European shares gained with the UK’s FTSE 100 up 1.4 per cent.

Early on Thursday morning President Trump’s Press Secretary Karoline Leavitt said her boss does not bluff and is prepared to “unleash hell” on Iran if it does not agree to his ceasefire conditions including a deal to reopen the Strait of Hormuz to shipping.

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“A senior Iranian official said Iran had rejected a US proposal to end the war,” said National Australian Bank. “The US proposal called Tehran to dismantle main nuclear sites, fully open the Strait of Hormuz and use a reduced missile arsenal in self-defence only. Iran has set out conditions of its own, including reparations, recognition of authority to collect fees from ships transiting the Strait of Hormuz and lifting of all sanctions.”

Futures for the S&P/ASX 200 pointed 0.4 per cent higher as the local share market bids to avoid a fourth straight week of losses stoked by fears an energy supply shock will force interest rates as high as 4.85 per cent later this year.

Gold prices also edged higher to $US4515 an ounce to claw back three weeks of heavy losses since the war erupted on February 27.

More to come.

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