Iran said that the latest proposal from the United States has succeeded in closing some of the gaps in the ongoing peace talks, but several key issues still cloud the chances of reaching a full agreement between the two sides.
Iran's semi-official media reported that Tehran is currently studying the text of the proposal submitted by Washington and acknowledged that there has been some progress in the talks. However, Iran insists that any further progress requires the United States to stop military threats against the republic.
Although the development was seen as positive, market sentiment was again disturbed after reports that Mojtaba Khamenei ordered Iran's nearly weapons-grade uranium stockpile not to be shipped out of the country.
The development rekindled concerns about the potential failure of the talks and pushed oil prices higher in early trading.
At the same time, Donald Trump rejected Iran and Oman's proposal to establish a permanent toll system in the Strait of Hormuz. Trump stressed that the strategic route must remain open and free because it is an international waterway critical to global energy trade.
US Secretary of State Marco Rubio also said that the toll system in the Strait of Hormuz would make any agreement with the US difficult to implement.
Conflicting statements from both sides have left the market still unable to determine whether the peace talks are getting closer to a conclusion or not. The uncertainty continues to cause oil price movements to remain volatile.
Brent crude oil prices moved in a wide range on Thursday as traders closely monitored the progress of the talks. Brent fell more than 1.5% to trade below $104 a barrel after jumping more than 3% in the early trading session.
At the same time, Goldman Sachs reported that global crude and product stocks are now falling at the fastest rate this month, indicating that the world's supply buffer is shrinking amid heightened geopolitical risks.
The United States has previously repeatedly pressed Tehran to hand over enriched uranium for fear that the material could be used to produce nuclear weapons. Washington also wants Iran to stop uranium enrichment activities for at least a decade.
However, Iranian leaders have continued to publicly reject those conditions, with Iranian President Masoud Pezeshkian insisting that his country will not back down in the ongoing negotiations.
