The global oil price climbed above $ 110 a barrel for the first time in three weeks yesterday (28), as traders worry that the United States and Iran are no closer to a deal to end the war and fully reopen the vital Strait of Hormuz.

Brent crude, the global oil benchmark, was up 2.7% to $ 111.2 a barrel in early morning trade. WTI, the US benchmark, was trading 2.3% higher at $ 98.5 a barrel.

US President Donald Trump signalled Monday that he was unlikely to accept Iran’s latest proposal to end the conflict, two people familiar with the matter told CNN. Tehran proposed a plan that would reopen the Strait of Hormuz while leaving questions about its nuclear programme for later negotiations.

“The stalemate and the closure of the Strait are still negative for oil prices,” Mohit Kumar, chief European economist at investment bank Jefferies wrote in a note. “The longer the Strait is closed, the more it would have a negative impact on the global economy,” he added.

(CNN)