Oil prices rise as Trump’s Iran deal deadline looms

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Osmond ChiaBusiness reporter

EPA

Global oil prices rose on Tuesday afternoon in Asia ahead of a deadline set by US President Donald Trump for Iran to open the crucial Strait of Hormuz shipping route.

The price of global benchmark Brent crude was up by about 1.4% to $111.33 (£84.13) a barrel, while US-traded oil gained 2.8% to $115.61.

On Monday, Trump threatened to take out Iran “in one night” if it failed to agree a deal with the US by 20:00 Washington DC time on Tuesday (00:00GMT Wednesday).

Oil and gas shipments from the Middle East have been severely disrupted as Tehran threatens to attack vessels that try to use the strait in retaliation for US and Israeli airstrikes since 28 February.

Speaking at the White House, Trump said that he believed “reasonable” leaders in Iran were negotiating in “good faith”, but that the outcome is still uncertain.

Iran has so far rejected proposals for a temporary ceasefire, demanding a permanent end to the war and the lifting of sanctions against the country.

Disruption to shipping in the Strait of Hormuz has pushed up the price of energy around the world and raised concerns about higher inflation globally.

Around a fifth of the world’s oil and gas shipments usually pass through the narrow waterway.

Major economies in Asia, including Japan and South Korea, have been particuarly impacted by the disruptions as they are heavily reliant on energy from the Middle East.

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