Oil Slumps After Pakistan Seeks Last-Minute Iran Extension

Article content(Bloomberg) — Oil slumped the most in two weeks after Pakistan sought a last-minute extension of a US deadline for Iran to open the Strait of Hormuz. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentWest Texas Intermediate fell as much as 5.2% to near $107 a barrel, after gaining 0.5% on Tuesday in a volatile session, while Brent closed at around $109. US President Donald Trump said he was in “heated negotiations” involving the war with Iran after mediator Pakistan asked for a two-week extension of his Tuesday deadline for Tehran to reopen the waterway.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentPakistan Prime Minister Shehbaz Sharif posted on social media that talks were “progressing steadily, strongly and powerfully,” and that his country asked Iran “to open Strait of Hormuz for a corresponding period of two weeks as a goodwill gesture.”Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe near-closure of that vital waterway — which normally transits about a fifth of the world’s oil and liquefied natural gas — has roiled energy markets, with WTI gaining almost 70% since the conflict started at the end of February. Trump has extended several previous deadlines for Iran to reopen the strait, and traders will be closely watching for a last-minute reprieve.Article content“If we see a peaceful agreement arise and the strait is re-opened mutually, crude could see a $15 to $30 a barrel immediate drop,” said Dennis Kissler, senior vice president for trading at BOK Financial Securities Inc.Article contentThe lead-up to the 8 p.m. Eastern Time deadline has been marked by military escalation and increasingly bellicose threats from the US president aimed at Iran, including a post saying “a whole civilization will die tonight.” Earlier in the day, American forces struck sites on the Islamic Republic’s Kharg Island similar to those that were hit in a round of attacks last month, but didn’t target energy infrastructure, according to US officials.Article contentSpeaking earlier in Budapest, Vice President JD Vance said he’s confident Iran will issue a response in time. But he also hinted at a military operation that would surpass anything the US and Israel have waged so far.Article content—With assistance from Charles Gorrivan.Article contentTrending Doritos at US$7 a bag ended up costing PepsiCo billions Retail & Marketing Canadian pension plans are so healthy that employers are taking a contribution 'holiday,' says Mercer Retirement Canada's accountant shortage is starting to add up despite quieter tax season Personal Finance William Watson: Open the highway, you crazy New Brunswickers! FP Comment Microsoft vows data centres will not hike Canadians' water and electricity bills Innovation Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Doritos at US$7 a bag ended up costing PepsiCo billions Retail & Marketing Canadian pension plans are so healthy that employers are taking a contribution 'holiday,' says Mercer Retirement Canada's accountant shortage is starting to add up despite quieter tax season Personal Finance William Watson: Open the highway, you crazy New Brunswickers! FP Comment Microsoft vows data centres will not hike Canadians' water and electricity bills Innovation