Oil prices drop as Iran offers new proposal for peace talks with US

(Sharecast News) - Oil prices fell on Friday afternoon following reports that Iran has put forward a new proposal for a second round of peace talks with the US. According to Iranian state news agency IRNA, Iran has sent its latest proposal for talks to Pakistani mediators.

Oil prices fell on the news and by 1550 BST, Brent crude was down 2% at $108.20 a barrel, while West Texas Intermediate was 3.7% lower at $101.17.

Pakistani officials reportedly told CBS News on Friday that a revised Iranian response to the latest US terms to end the war had been conveyed to American officials, confirming the report by Iranian state media.

Earlier in the week, Trump rejected an Iranian proposal to first open the Strait of Hormuz and lift the blockade, and postpone nuclear talks to a later stage. Trump told Axios he would keep Iran under a naval blockade until the regime agrees to a deal that addresses US concerns about its nuclear program.

Axios also reported on Thursday that the US Central Command had prepared plans for a "short and powerful" wave of strikes on Iran in hopes of breaking the negotiating deadlock.