Brent gains as Iran refuses to give up uranium enrichment plans

The front-month ICE Brent contract has gained by $0.83/bbl on the day, to trade at $105.81/bbl at 09.00 GMT.

IMAGE: Oil storage tanks. Getty Images

Upward pressure:

Brent’s price is poised to end the week above $100/bbl, following reports that Iran’s new Supreme Leader remains unwilling to abandon the country’s uranium enrichment program, a major sticking point in efforts to secure a peace deal.

Mojtaba Khamenei, Iran’s new hardline Supreme Leader, has issued an order for uranium-powered weapons to remain within Iran, Reuters reported.

The news comes days after US President Donald Trump said Tehran will not be allowed to continue uranium enrichment under the peace deal.

The conflict in interest is expected to complicate the fragile peace deal between the US and Iran – further adding upward pressure on oil prices, market analysts said.

“The issues at stake remain the location of Iran’s uranium stockpile and control over the Strait of Hormuz,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Downward pressure:

While there are no significant downward pressures on Brent’s price today, market participants will be focused on any suggestions of progress in US-Iran negotiations.

Washington is in the “final stages” of the ongoing negotiations with Tehran, Reuters reported citing Trump.

“Speculation is mounting about a peace deal between the US and Iran. Both sides have signalled progress in recent talks,” Hynes said.

By Aparupa Mazumder

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