Oil prices boomeranged back to where they started despite President Donald Trump extending the deadline for Iran to open the Strait of Hormuz. Crude oil closed on Thursday about 4% higher than it closed the day before.
The president announced on Truth Social that he was extending the deadline to April 6, giving Iran 10 days more than his previous ultimatum. He said the Iranian government requested the extension.
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“As per Iranian Government request, please let this statement serve to represent that I am pausing the period of Energy Plant destruction,” Trump said in a Truth Social post. “Talks are ongoing and, despite erroneous statements to the contrary by the Fake News Media, and others, they are going very well.”
Trump originally paused an attack on Iran’s energy infrastructure, which was scheduled to end on Friday. This extension wasn’t technically Trump’s first. On Sunday, he posted on his social media platform, allowing Iran 48 hours to reopen the strait. Trump said he would “hit and obliterate” Iranian power plants.
How is the war affecting prices?
The war has caused a rapid increase in crude oil prices, reaching $120 per barrel at its highest point. Iran’s effective closure of the Strait of Hormuz, a critical shipping passage, has been a major issue since the conflict began on Feb. 28. Consumer gas prices have risen along with the price of oil, with the average price just under $4 per gallon.
While initially confrontational towards the Iranian government, Trump has seemed more optimistic recently about a potential ceasefire between the two countries. Trump said that the Iranians want a peace deal and that they even gave him a gift to show their willingness to negotiate.
However, Iran’s leadership has said that they have not been speaking with American negotiators and even rejected the Trump administration’s 15-point plan. Iranian officials released their proposal to end the war, which included Iran maintaining control of the Strait of Hormuz.
During the first cabinet meeting since the war began, Trump denied suggestions that he hoped for a peace deal. Trump insisted that Iran was the group trying to end the war despite what they have said publicly.
“I read a story today that I’m desperate to make a deal,” Trump said. “I’m the opposite of desperate. I don’t care.”
Steve Witkoff, a key negotiator in the talks, said during the cabinet meeting that Iranian officials were showing “strong signs” that they were ready to end the conflict.
“We will see where things lead, and if we can convince Iran that this is the inflection point with no good alternatives for them, other than more death and destruction,” Witkoff said.
