Oil prices rise despite Iran’s proposal to reopen Strait of Hormuz

Oil prices are continuing to climb despite Iran’s proposal to end its effective blockade of the Strait of Hormuz in exchange for deferring nuclear negotiations with the United States.

Brent crude, the international benchmark, rose more than 1 percent on Tuesday as Tehran’s offer failed to assuage traders’ concerns about the blockade of the waterway critical for global fuel supplies.

Brent stood at $109.42 per barrel as of 03:30 GMT, up 11 percent from Tuesday last week, and the last time the benchmark closed below $100.

The latest rise came as Iranian Foreign Minister Abbas Araghchi shared proposals to reopen the strait with interlocutor Pakistan amid stalled peace negotiations between Washington and Tehran.

The US has not commented publicly on the Iranian proposal, which would set aside the thorny issue of Iran’s nuclear programme to a later date.