Crude prices edged higher Monday after Iran's Foreign Ministry ruled out extending its memorandum of understanding with the United States, and a senior Iranian official warned Tehran would go on the offensive if diplomacy fails. The deal, meant to keep the Strait of Hormuz open while the two sides negotiated Iran's nuclear program, expired the same day.
Crude oil prices edged higher Monday as Iran ruled out talks to extend the memorandum of understanding (MOU) it signed with the United States. U.S. crude oil futures rose 0.76% to $83.03 per barrel, while Brent crude climbed 0.92% to $89.33 per barrel.
A senior Iranian official told Reuters that Tehran would shift to offense rather than relying on defense if diplomacy with the U.S. fails. The warning follows months of tension over the Strait of Hormuz, a key transit route for global oil shipments.
The U.S. and Iran signed the MOU on June 17, aiming to keep the Strait open while negotiating a final deal on Tehran's nuclear program within 60 days, a deadline that expired Monday. Iran's Foreign Ministry spokesman, Esmail Baghaei, ruled out talks to extend the MOU, according to the state news agency Tasnim.
According to Tasnim: "the U.S. violated the understanding from the very beginning", Baghaei said, adding that the 60-day issue is no longer relevant.
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