Oil prices extended gains on Wednesday as talks to end the US-Israeli war on Iran stuttered.
Despite Donald Trump’s assurances that the United States and Iran are edging closer to ending their three-month-long war and reopening the Strait of Hormuz, crude investors appear unmoved as they await solid progress.
Unease on trading floors has risen this week after reports in Iran said it had broken off contact over Israel’s attacks on Lebanon, which the US president denied on Tuesday.
“Fake News Reports that the Islamic Republic of Iran, and the USA, stopped speaking a few days ago are false and erroneous,” he wrote on his Truth Social network.
“The conversations between us have been going on continuously, including four days ago, three days ago, two days ago, one day ago, and today.”
He added: “Where they lead, one never knows, but as I told Iran, ‘It’s time, one way or another, for you to make a Deal. You’ve been doing this for 47 years, and it cannot be allowed to go on any longer!'”
Israel is continuing attacks on Lebanon, jeopardising the fragile truce between Washington and Tehran, while Iran fired missiles at nearby countries.
The president said he remained upbeat about a deal.
However, the US military said Tuesday it had “successfully defeated” a series of Iranian missile and drone attacks in the Gulf and conducted self-defence strikes on the country’s Qeshm Island. Centcom also said three attack drones launched by Iran “toward civilian mariners” had been hit.
Uncertainty about a peace deal pushed oil prices up more than one per cent, with both main contracts up around five per cent this week.
