International Oil Prices Rise on Caution Over US-Iran Negotiation Progress... Brent Up 5%

Vessel off the coast of the UAE

International oil prices rose on the 16th (local time) as caution spread in the market that peace talks between the US and Iran could fall into a deadlock.

On this day, the closing price of Brent crude oil futures for June delivery at the ICE Futures Exchange was $99.39 per barrel, up 4.7% from the previous trading session.

At the New York Mercantile Exchange, the closing price of US West Texas Intermediate (WTI) crude oil futures for May delivery rose 3.7% from the previous session to $94.69 per barrel.

US Secretary of Defense (War Department) Pete Hegseth stated at a briefing today, addressing Iran, "If you make the wrong choice and do not reach an agreement, our military is fully prepared to continue the ironclad blockade (naval blockade against Iran) and resume combat operations."

While the US military maintains a blockade on vessels traveling to and from Iran in the Strait of Hormuz, US Joint Chiefs of Staff Chairman Dan Kane, who joined the briefing today, said that all vessels warned by the US military have turned back so far, and 13 vessels have chosen to turn back.

On the other hand, some in the market are raising skepticism that the US military's strait blockade strategy, aimed at pressuring Iran's economy, will have little effect in changing Iran's stance, given that Iran has endured intense US economic sanctions for a long time.

John Evans, an analyst at oil brokerage PVM, said, "I remain skeptical that there is a solution to immediately end this war," adding, "No matter what news comes out, there is always a counter-argument."

Meanwhile, US President Donald Trump met with reporters at the White House today and said that there has been significant progress in negotiations with Iran and that they are very close to an agreement, adding that the next round of talks with Iran could take place over the weekend.

President Trump announced that Israel and Lebanon had agreed to a ten-day official ceasefire, but this had little effect on curbing the rise in oil prices.