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Oil Slides as U.S. Floats Iran Plan and Tehran Signals Limited Hormuz Transit

Hopes of de-escalation cooled prices, leaving a war-damaged energy system exposed.

Overview

  • Trump said talks were underway after Monday’s five-day pause on planned strikes, and U.S. officials said a 15-point proposal was sent to Iran via Pakistan as Tehran publicly denied formal negotiations.
  • Iran told the UN’s maritime agency it would allow “non‑hostile” ships through the Strait of Hormuz, a limited step that has not restored normal tanker traffic.
  • Crude prices fell more than 5% with Brent dipping below $100 following Tuesday’s de-escalation signals, even as investors weighed the risk of renewed escalation.
  • QatarEnergy said strikes at Ras Laffan cut about 17% of its LNG export capacity for 3 to 5 years, ensuring supply strain even if transit conditions improve.
  • Shell’s chief warned Europe could face fuel shortages by next month, while India moved to steady supplies and rejected rumors that households would receive underfilled LPG cylinders.