US and Iran decide to extend their 60-day ceasefire; Crude oil prices trade flat

The US-Iran war reached a new stage as media reports indicate an extension of the ceasefire between the counterparts. According to Media reports from Al Arabiya, the US and Iran have agreed to extend their 60-day truce established in the June Memorandum of Understanding.

Meanwhile, crude oil prices remained largely stable, with no major swings on either side. The Brent crude oil futures hovered near $89 per barrel on Monday, hitting an intraday high of $89.6 per barrel. Similarly, the WTI crude oil futures hovered near $83 per barrel, hitting an intraday high of $83.2 per barrel.

However, the supposed extension does not hint towards a potential or imminent deal. The traffic in the Strait of Hormuz continues to remain affected as the Iran-US war crossed 170 days mark on Monday.

On the other hand, President Trump threatened to bomb Oman if they get in the way of US efforts to reopen the Strait of Hormuz and end the war with Iran.

While speaking with Fox News, President Trump said that his administration has established back channels with the IRGC (Iran Revolutionary Guards Corps) and that they are good poker players.

On the other hand, Iran’s Foreign Minister Abbas Argacchi said Tehran has not decided whether to resume talks with the US, while President Donald Trump urged Americans to accept somewhat higher gasoline prices as the conflict continues.

Meanwhile, shipping activity through the Strait of Hormuz slowed down following the attacks in the last week. The latest data showed only a handful of ships passed through the Strait of Hormuz over the weekend, as compared to over 30 in the previous week.