Oil closes lower as investors monitors Middle East developments

Oil drilling rigs

Oil prices fell at the close of trading today, March 25, as investors monitored the military situation in the Middle East after Iran rejected a US plan to end the war, and amid Washington's threat to intensify strikes.

Brent crude futures for May delivery fell 2.17%, or $2.27, to $102.22 a barrel. WTI crude oil futures for May delivery also fell by 2.20%, or $2.03, to $90.32 a barrel.

This comes against the backdrop of hopes for an end to the ongoing war in the Middle East, with repeated American assurances of holding talks with the Iranian side.

However, Iranian state media announced Tehran’s rejection of an American settlement plan, and set five conditions for reaching a truce, including “exercising its sovereignty over the Strait of Hormuz.”

On another front, reports indicate that at least 40% of Russia’s oil export capacity was disrupted by a series of Ukrainian drone attacks, targeting of a major pipeline, as well as the seizure of several tankers.