Brent crude oil has experienced intense fluctuations this week, temporarily falling below $95 per barrel. Whether the US and Iran can truly reach a reconciliation agreement remains a major factor.
(Background: Bitcoin rebounded to $70,800, with 87,000 people liquidated for $230 million; “extreme fear” has lasted 46 days, the longest record since FTX)
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Brent crude oil has been highly volatile this week, dropping from last weekend’s high of $112 by 11% to $97, then rebounding to $104. Early this morning (25th), it quickly fell another 8%, currently at $94.67.
Behind this sharp movement is the market questioning: How credible are Trump’s statements?
On March 25, Trump claimed at the White House that the US is “talking to the right people in Iran,” stating that Iran is very eager to reach an agreement, has agreed not to develop nuclear weapons, and sent a valuable gift involving oil, natural gas, and the Strait of Hormuz transit rights.
Vice President Vance and Secretary of State Rubio are both involved, and the US also revealed that it has submitted a 15-point peace plan to Iran through Pakistan.
Trump summarized: “We have already won this war.”
However, Iran’s response was a clean and straightforward denial. Iran’s semi-official news agency stated that no negotiations have taken place and that Trump is unreliable. Parliament Speaker Ghalibaf used even more direct language, calling it “fake news manipulating the oil market.”
Meanwhile, Iran’s Supreme Leader’s office appointed hardliner Mohammad-Bagher Zolghadr as head of the National Security Council. This personnel change at this time is completely opposite to the direction of “approaching reconciliation.”
Iran’s previous public condition was: demanding compensation from the US and guarantees not to launch attacks in the future. The content of Trump’s 15-point plan has not been disclosed, but based on the current public statements from both sides, even the most basic question of whether negotiations are ongoing seems to lack consensus.