Oil prices jump as Iran says no direct talks with US to end war

Mumbai, March 26 (SocialNews.XYZ) Global oil prices jumped to cross $100 per barrel on Thursday after Iran said it was not engaged in direct negotiations with the US to end the war.

Brent crude futures rose 1.21 per cent to $103.46 per barrel while US West Texas Intermediate (WTI) crude jumped 1.35 per cent to $91.54 per barrel, as Middle East tensions continued to escalate.

According to Iranian Foreign Minister Abbas Araghchi, exchanges between Tehran and Washington through intermediaries should not be interpreted as negotiations. Tehran was also likely to reject a US-backed ceasefire proposal.

Earlier, international crude oil prices witnessed a sharp decline on Wednesday amid growing hopes of a ceasefire in the West Asia region.

According to experts, the recent correction in crude prices could offer some relief to India’s macroeconomic indicators, including inflation and the Current Account Deficit (CAD), even as technical indicators suggest key support levels are being tested.

For India, every $10 per barrel movement in crude typically impacts the CAD by 0.3–0.5 percentage points of the GDP and raises CPI inflation by 20–30 basis points, depending on pass-through.

Meanwhile, Iran has announced that it will not impose restrictions on vessels belonging to five "friendly" countries, including India, allowing them to pass through the strategically crucial Strait of Hormuz even as access remains limited for others.

Along with India, ships from Russia, China, Pakistan and Iraq have been granted safe passage through the key maritime chokepoint despite the ongoing conflict in the region.

At the same time, he indicated that vessels linked to countries seen as adversaries or those involved in the ongoing conflict would not be allowed passage. He said ships from the United States, Israel and certain Gulf nations playing a role in the current crisis would not be given clearance to transit through the strait.

—IANS

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Source: IANS