Crude oil prices are lower on Sept. 25 after Iran offered to reopen the Strait of Hormuz shipping route within seven days and restart nuclear talks.
Iran’s Foreign Minister Abbas Araghchi has proposed reopening the Strait of Hormuz waterway where 20% of the world’s crude oil typically flows.
News of the potential diplomatic solution has the price of crude oil down about 2% after trending higher throughout the week.
Brent crude oil, the international standard, is down 1.55% and trading at $104.94 U.S. per barrel early on Sept. 25.
West Texas Intermediate (WTI) crude, the U.S. standard, is down 2.25% and trading at $92.48 U.S. per barrel.
The latest offer comes nearly seven months after the U.S. and Israel launched their war against Iran. Previous efforts at reaching a lasting peace with Iran and ending the war have failed.
The latest offer from Iran comes with conditions attached.
Iran’s government said in a statement: “The conditions we have asked the U.S. to meet are nothing new, nothing more than what was already in the Islamabad MOU, which was signed by the U.S. President.”
The Islamabad Memorandum of Understanding (MOU) refers to a June ceasefire agreement between the U.S. and Iran that collapsed in July.
The Trump administration has previously said that it will not return to the terms of the June agreement.
Iran’s offer to end the war comes amid continued missile strikes in the Middle East and a push by China to help broker a peace deal.
U.S. President Donald Trump has reportedly sought China’s help in pressuring Iran to accept a settlement.
The latest potential peace deal surfaces with diesel fuel prices in the U.S. at a record high and above $6 U.S. a gallon for the first time.
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