Brent crude oil prices fall over 6% on reports of US diplomatic push to end Iran war

Crude oil prices dropped as much as 6% early morning on Thursday, March 25, on multiple reports of the US engaging in a diplomatic push to end the war with Iran, overshadowing contradictory reports of troops being sent to the region soon.West Texas Intermediate (WTI) or the US crude variant, fell over 5% to trade below $88 a barrel, after seeing a minor rebound on Monday. Brent Crude’s June contracts are now down over 6% in early Asia trading on Thursday, to slip below the mark of $95 a barrel.

Earlier, Israel’s Channel 12 reported that Washington is looking for a one-month ceasefire for talks. Another report from the New York Times stated that the US has sent Iran a 15-point plan to end the conflict, citing two officials in the know. The NYT report has also sent US futures surging in early evening trade on Wall Street, after benchmark indices ended the regular session on a negative note.
The other contradictory report from Bloomberg stated that the Trump Administration has ordered the 82nd Airborne Division to deploy around 2,000 soldiers to the region, citing people in the know. Some media outlets have pegged the figure at 3,000 troops.Despite the recent bouts of volatility, oil prices remain on track for a substantial monthly advance, as the war continues into the fourth week.

Israel — which opened the war in late February in a joint assault with the US — has showed no signs of letup. Defense Minister Israel Katz said on Tuesday that the campaign would continue “at full intensity.” In its report on the ceasefire plan, Channel 12 said Israel was concerned about the proposal and believed it was unlikely Iran would accept.

(With Inputs From Agencies)