Iran gains stronger leverage as oil surges above $100, forcing urgent diplomatic solutions

AI summary

<p></p><p>Oil prices have surged above $100 a barrel this week as the market started to price in a prolonged disruption to energy flows after <a href="https://investinglive.com/commodities/trump-says-oil-prices-won-t-come-down-until-after-the-midterms-3/" rel="follow">Trump's midterm comments</a>. Brent climbed as high as around $109 yesterday, while WTI moved above $104, with both benchmarks on track for their strongest weekly gains in months. </p><p>Iran's foreign minister and Pakistan's army chief have been discussing ways to restore diplomatic efforts and de-escalate the conflict on all fronts. Islamabad has also been pressing Tehran to rein in the Iran-backed Houthis following their attacks on Saudi Arabia.</p><p>The diplomatic push is gaining momentum ahead of a <a href="https://www.ft.com/content/df2d9bcc-59f9-4122-aa4d-2020bef77e0e?syn-25a6b1a6=1" rel="follow">Monday meeting in Oman</a> where the foreign ministers of the six-member Gulf Cooperation Council are expected to meet their Iranian counterpart. The meeting would be the first high-level diplomatic gathering between Iran and the GCC since the war began, highlighting the growing urgency to restore shipping flows.</p><p>The sharp increase in oil prices above the psychological $100 level now gives Tehran greater leverage in negotiations. The key issue remains the Strait of Hormuz, through which a significant share of global energy supplies passes. Iran and Oman have been working on an interim arrangement that c