Pakistan has sent a proposal for an immediate ceasefire to the US and Iran, according to US media reports on Monday. Crude futures fell by 4pc from their session highs on the news.
The plan would entail an immediate end to hostilities and the reopening of the strait of Hormuz, as part of a 45-day ceasefire designed to lead to a permanent end to the war, Reuters reported, citing an unnamed source. US vice president JD Vance and Iran's foreign minister Abbas Araqchi are involved in the discussions, it said.
The ceasefire proposals were first reported by US news agency Axios, which said earlier on Monday that Egypt and Turkey were also helping to broker the talks. It quoted US president Donald Trump as telling it that Washington is in "deep negotiations" with Iran and has a "good chance" of reaching a deal by his new deadline of 8pm Eastern time on 7 April.
Nevertheless, Axios — citing unnamed US, Israeli and regional officials — described the chances of reaching a partial deal over the next 48 hours as "slim".
The reports of the ceasefire proposal came after Trump reiterated his threat to attack Iran's electric power infrastructure if the country does not allow unfettered passage through the strait of Hormuz, using some of his strongest language yet.
Attacks on Mideast Gulf energy infrastructure continued over the weekend. A vessel was attacked off the UAE yesterday, the UK Maritime Trade Operations (UKMTO) said.
The Ice front-month June Brent contract traded as low as $107.36/bl on Monday, down by 1.5pc from its settlement on 2 April. The contract earlier traded as high as $111.89/bl.
The Nymex front-month May crude contract, which earlier hit a session high above $115/bl, fell below $109/bl.
