Oil Prices Dip as World Awaits Iran's Response

Iran is expected to respond to the latest peace proposal from the US on Thursday, reports CNN, and oil prices suggest that traders are optimistic. Prices for Brent crude, the international benchmark, fell below $100 on hopes the Strait of Hormuz would soon be open to commercial shipping, reports CNBC. S&P 500 and Dow futures ticked up slightly. The optimism is buoyed by reports that US and Iran are close to a deal to end the war, but tempered by President Trump's threat to resume bombing with more intensity if the deal falls through.

Iran's Foreign Ministry said it was still studying the proposal and pointedly stressed on X that true negotiations require "good faith," not "dictation" or "coercion." Reuters reports the proposed deal would formally end the fighting, reopen the strait, and lay out a 30-day window for talks on issues such as Iran's nuclear program. "Our priority is that they announce a permanent end to war, and the rest of the issues could be thrashed out once they get back to direct talks," a senior Pakistani official tells the outlet.