Iran Submits New Negotiation Proposal; New York Oil Plummets 5% Midday

¬ Middle East Conflict May Lead to Germany’s Winter Gas Supply Cut ¬ Singapore PM Huang Xuncai: Persistent Closure of Strait of Hormuz Will Slow Singapore’s Economy This Year

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AFP, London, 1st—Iranian media reported that Tehran has submitted a new negotiation proposal to the United States through Pakistan as intermediary. In response, crude oil prices on the New York Mercantile Exchange plunged sharply by 5% during trading hours today.

According to AFP reporting, WTI crude oil on the New York Mercantile Exchange dropped 4.97% to $99.85 per barrel, with intraday losses exceeding 5%.

North Sea Brent crude fell 3.10%, settling at $106.98 per barrel.

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German media reports indicate that rising gas prices due to Middle East conflict may leave Germany facing insufficient gas reserves for next winter, with potential shortages of kerosene, fertilizers, and disposable gloves among other essential supplies.

Sebastian Heinemann, General Manager of the German Gas and Hydrogen Storage Operators Association (INES), stated: "From political and social perspectives, the market currently fails to provide the necessary supply security."

He warned that if current market conditions persist, "Germany will struggle to cope with extreme cold weather, let alone external shocks." Heinemann noted that last winter avoided gas shortages primarily because temperatures were not unusually low and no major crisis occurred.

Mary-Louise Wolf, Chair of the German Federal Association of Energy and Water Enterprises (BDEW), believes the most severe impacts of the closure of the Strait of Hormuz have not yet materialized.

Escalating tensions in the Middle East have driven up fuel and industrial product prices globally. On February 28, the U.S. and Israel launched attacks on targets inside Iran, including Tehran, nearly bringing shipping through the Strait of Hormuz to a standstill. The Strait is a critical maritime route for global oil and liquefied natural gas shipments, accounting for approximately 20% of global oil, petroleum products, and LNG supply.

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AFP, Singapore, 1st—Singapore Prime Minister Lawrence Wong warned today that due to the ongoing closure of the Strait of Hormuz caused by the Middle East crisis, Singapore's economic growth this year will slow down, and some countries may even fall into recession.

According to AFP reporting, Wong made the remarks in his May Day labor speech, stating that the war is expected to "not end in the short term," and supply chain disruptions could worsen over the coming months.

Since the joint U.S.-Israel airstrikes on Iran beginning February 28, the Strait of Hormuz—carrying about one-fifth of the world’s oil and gas transport—has effectively been closed.

"In Asia, we are especially affected, as we rely heavily on energy and other critical supplies from the Persian Gulf region," Wong said.

He added: "Global inflation will rise, spreading from energy to food and then affecting other basic necessities. Some economies are likely to enter recession, and Singapore will be directly impacted."

"Our economic growth this year will slow, inflation will intensify, and all these factors will place real pressure on businesses, workers, and households."

Nevertheless, Wong pointed out that Singapore’s past policies aimed at enhancing energy resilience—including becoming a major refining hub and energy trading center—have placed the country in a favorable position to respond to crises.

He also cautioned that even if the Strait of Hormuz reopens, conditions will not return to normal immediately. "Ports and energy infrastructure have been damaged, and mine clearance will be required before navigation can resume safely."

© 2026 AFP

Original: toutiao.com/article/1864003841408072/

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