IN A dramatic turn in the current energy crisis, Dr. Lerpong Sayed, president of the Thai-Iranian Alumni Association, said Tehran had sent a message to Prime Minister Anutin Charnvirakul offering to help Thailand by selling crude oil at a special price below global market rate to help alleviate the hardship of the Thai people, Amarin TV said this evening (March 25).
This offer arose through the good relations between the association and the Iranian government with the crude oil to be sold at particularly friendly price, Lerpong said.
This would significantly reduce Thailand’s crude oil import costs during a period of volatile global oil prices due to the closure of the Strait of Hormuz.
“This is a crucial opportunity that the government should consider for the benefit of the people’s livelihood,” Lerpong said, adding the message is aimed at Anutin, as the highest decision-maker, to oversee and consider the possibility of opening negotiations at the government-to-government (G2G) level.
Although the offer seems attractive, economic and foreign policy experts believe the Thai government still faces three tough challenges.
Firstly, sanctions from the United States. Directly purchasing oil from Iran could put Thailand at risk of secondary sanctions, impacting global banking and trade systems.
Security is another concern. Since Iran is excluded from the SWIFT system, payment for oil must be made using special methods such as barter trade or local currencies.
Furthermore, regional tensions, most recently the attack on the Thai cargo ship Mayuree Naree in a nearby area, necessitate a cautious approach to diplomatic relations.
To date, the government, through Prime Minister Anutin, has not officially responded to the proposal and is focusing on domestic measures such as freezing diesel prices and encouraging public energy conservation.
Crude oil plunges below $100 as tensions show signs of cooling
Global crude markets saw a sharp pullback on Wednesday (March 25) snapping a recent rally as optimism around a potential diplomatic resolution in the Middle East lifted sentiment. After weeks of volatility driven by escalating tensions, traders reacted to signals that negotiations could help stabilise supply flows. Fuel prices dropped more than 5 percent, reversing gains from the previous session, Times Now said.
The decline came as reports emerged that the United States had presented a 15-point framework to Iran aimed at de-escalating the conflict. The possibility of a breakthrough has prompted investors to reassess risk premiums built into oil prices.
US President Donald Trump said Washington and Tehran are “currently in negotiations” and suggested that Iran is eager to strike a peace deal, even as the Islamic Republic has denied holding any direct talks with the United States. He further added that in case the two nations agree to a deal to end the war, oil prices would “drop like a rock.”
During the day, Brent crude futures plunged $6.21, or 5.9 percent, to $98.28 per barrel, after touching an intraday low of $97.57. Meanwhile, US West Texas Intermediate crude dropped $4.67, or 5.1 percent, to $87.68 per barrel, with earlier losses extending to $86.72.
This downturn follows a nearly 5 percent surge in both benchmarks on Tuesday, highlighting the continued volatility in global energy markets.
CAPTIONS:
Top and Front Page – Prime Minister Anutin Charnvirakul, left, and Dr. Lerpong Sayed, right. Photo – Amarin TV
Insert – Barrels of crude oil. Photo – Atik Sulianami on Unsplash
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