Iran-US Tensions Drive Oil Prices Higher Amid Lack of Response Claims
Oil prices climbed significantly following statements by Iranian Parliament Speaker Mohammad Bagher Qalibaf, who claimed the United States has yet to respond to messages conveying Iran's demands, escalating Middle East tensions.
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Iranian Parliament Speaker Mohammad Bagher Qalibaf stated that Iran has conveyed its legal demands and seven conditions for the opening of the Strait of Hormuz to the United States, but Washington has not yet provided an official response. These developments led to a notable increase in international oil prices.
Speaking to Qatar-based Al Jazeera television, Qalibaf attributed the failure to reach an agreement with the US to Iran's distrust of the United States and Washington's excessive demands. The Iranian official added that they are determined to move beyond the "neither war nor peace" situation, aiming to achieve this through both negotiation and lasting deterrence.
Brent crude oil futures rose by nearly 3% to $93.90 per barrel, while WTI crude climbed almost 2% to $87.98, according to OilPrice.com. These gains occurred after Iran denied negotiating with Washington and analysts saw no immediate end to the conflict. Earlier in November, Brent had fallen about 21% and WTI about 17% on expectations of a de-escalation.
Iran's top security official, Mohsen Rezaei, also denied reports of talks with Washington, calling them "pure lies" spread to push down oil prices. UBS analyst Giovanni Staunovo pointed to "fading hopes of an imminent de-escalation," while Bloomberg columnist Javier Blas described Brent at around $90 as "an oddity."
The Washington Institute for Near East Policy reported 37 ships were attacked in the Gulf in October, the highest monthly figure since the conflict began. LSEG Oil Research emphasized that even with a deal, traffic through the Strait of Hormuz would depend on mine clearing, insurance costs, and shipowners' willingness to take risks. Allianz Trade estimates physical damage across Gulf countries exceeds $200 billion, projecting cumulative economic losses of up to $790 billion by 2030.