Crude oil prices trade over $102/bbl as Iran submits Hormuz deal to US; gold prices flat

Crude oil prices in the global market were trading above $102 per barrel (bbl) during the early market session on Tuesday, April 28, as Iran offered a fresh proposal to the United States to open the key trading route, Strait of Hormuz, amid the existing blockades.

Media reports highlighted that the Hormuz deal is aimed at reopening the Strait, but talks about Iran’s nuclear programme have been deferred for later as the two countries in conflict remain engaged in diplomatic talks.

The global benchmark crude oil, Brent crude oil prices for the July futures, remained under $103 per bbl during Monday’s trading session, with rates hitting a day’s high of $102.63 per bbl amid the heightened uncertainty in West Asia and stalling talks over a potential peace deal.

The West Texas Intermediate (WTI) crude oil futures for the June contract hit an intraday high of $97.66 per bbl on April 27, after opening at around $95.57 per bbl. The oil prices remained volatile as investors focused on the dynamic developments in the diplomatic talks.

Oil prices today

At 7:32 am, Brent crude oil prices were trading 0.82% higher at $102.52 per bbl on Tuesday, compared to $101.69 per bbl at the previous commodity market close, according to the data collected from Investing.com.

The US-based WTI crude oil prices were trading 0.95% higher at $97.31 per bbl on April 28, compared to $96.37 per bbl at the previous market close, according to the exchange data.

Iran’s proposal update

As tensions loom over the Strait of Hormuz with the conflict in its ninth week, Iran has submitted a peace proposal to the United States aimed at reopening the key trading route for the world, but has deferred the nuclear programme talks with the Western nation.

According to an Al Jazeera report, Iranian Foreign Minister Abbas Araghchi has discussed the same with the regional representatives and now aims to secure a broader buy-in for the plan.

Araghchi also met with Russian President Vladimir Putin in St. Petersburg on Monday to discuss the ongoing conflict in West Asia.

Latest reports from CNN also suggest that US President Donald Trump, on Monday, has signalled that he is unlikely to accept the latest proposal, which aims to reopen the key trading passage.

Trump reportedly held a meeting with his top national security officials where the topic was discussed, and people aware of the development told the news portal that Trump was not likely to accept the plan.

Although White House refused to comment, Assistant Press Secretary Olivia Wales, in a statement to the press, said that Trump will only make a deal which puts the American people first and never allow Iran to have nuclear weapons.

Investors were trading with caution about the commentary and on the backdrop of volatile prices in the market, amid the supply chain disruption.

Gold prices today

The New York Mercantile Exchange-based COMEX gold prices were trading marginally (0.04%) lower at $4,691.70 per ounce as of 10:13 pm (ET) on Monday, April 27, compared to the previous market close levels at $4,693.70 per ounce at the previous market close, according to the official data.

The gold prices remained under pressure due to the higher US dollar demand in the market, as the precious yellow metal is traded with the benchmark currency across the world. Traders tend to buy less gold when the dollar rate is higher, as buyers will be able to purchase less quantity of the commodity for the same price.

Bloomberg US Dollar spot index (DYX) data showed that the greenback was trading 0.07% higher at 98.567 as of 10:13 pm (ET) on April 27 in the United States, compared to the previous currency market close.