Crude oil surges before dropping back, risking to breach the 109 mark: US reportedly considering "temporary easing" of Iran sanctions, causing oil prices to reverse gains.

According to Iranian media reports, the United States has proposed a temporary waiver of the oil sanctions imposed on the country as part of peace talks aimed at ending the weeks-long war. Following this news, oil prices erased earlier gains. Brent crude prices fluctuated around $109, earlier rising as much as 2.5%. The semi-official Tasnim news agency reported that the US is proposing a temporary waiver until a final agreement is reached. Iran's oil has been under severe sanctions since President Trump withdrew from the Iran nuclear deal in his first term. Over the weekend, President Trump posted on social media, saying, "For Iran, time is running out, they need to act fast, they better be fast, or they will be no more. Time is of the essence!" Tehran confirmed on Monday that they are continuing dialogue with the US through Pakistan. Iran's latest proposal shows that they want to reach a long, phased ceasefire agreement. Iran is requesting the gradual and safe opening of the Strait of Hormuz. They agree to a long-term freeze on their nuclear program, rather than complete dismantlement. Iran can unconditionally transfer enriched uranium to Russia, not the US. In addition, Iran wants political language in the agreement to save face. They also want Pakistan and Oman to play a role in any friction in the Strait of Hormuz. The proposal also states that Iran requests economic facilitation measures instead of compensation, and they want the complexity of maritime routes and nuclear issues to be separated, with multiple international guarantees for any possible agreement. Since the US and Israel first attacked Iran at the end of February, oil prices have risen by over 50%, and the flow through the Strait of Hormuz has weakened the supply of oil-producing countries in the Persian Gulf. Morgan Stanley stated last week that the market is "running against time" as if this key waterway remains closed until June, factors that suppress the rise in war prices will face significant negative pressure. The International Energy Agency reiterated on Monday that global oil stocks are rapidly declining. The US-Iran Strait of Hormuz agreement has yet to be reached, oil prices have risen for the third consecutive day Over the weekend, energy facilities in the Persian Gulf were attacked, with a drone attack causing a fire at a nuclear facility in the United Arab Emirates, highlighting the fragility of the ceasefire agreement.