Oil prices have reversed earlier gains and turned lower following reports that mediators have proposed a ten-day ceasefire between the United States and Iran in the wake of recent escalations.
The Brent crude benchmark fell below $87 per barrel, having earlier climbed above $91. Reuters cited an unnamed senior Iranian official stating that the proposed pause aims to find a pathway to revive a near-collapsed provisional peace agreement between the U.S. and Iran.
Earlier, Iran's foreign ministry indicated it had received proposals from mediators regarding the Iran-U.S. conflict but did not provide specifics.
"Diplomatic channels have been active in recent days, and some ideas from mediators have been conveyed to the Islamic Republic of Iran," stated Iranian Foreign Ministry spokesman Esmail Baghaei during a press conference.
As of 12:54 p.m. London time, Brent crude for September delivery was down 1.2% at $87.06 per barrel, while West Texas Intermediate for August delivery traded at $80.97 per barrel.
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