US President Donald Trump extended his deadline for Iran to reopen the Strait of Hormuz for another 10 days until April 6, claiming that negotiations with Tehran were going ‘very well’ even though Iran rejected his 15-point proposal to end the ongoing US-Iran war. 

Oil markets are being driven by the standoff over the Strait of Hormuz, with Iran rejecting U.S. terms and delays in negotiations pushing Brent back above $110, OilPrice reports.

The closure of the Hormuz Strait against Donald Trump’s hopes for constructive negotiations, such is the main price-defining relationship this week for oil markets. In a somewhat peculiar fashion, prices reacted immediately to Trump’s first 5-day deadline extension, however today’s 10-day postponement triggered a spike that sent ICE Brent above $110 per barrel again. With Iran formally rejecting Trump’s 15-point plan for peace and submitting its own list of demands, the immediate outlook for oil is ‘higher for longer’.

/OilPrice/