- Oil prices fell after Trump expressed optimism about a lasting US-Iran ceasefire
- Brent crude neared $98 per barrel; US West Texas Intermediate hovered near $93
- Iran has not publicly confirmed any concessions on Strait of Hormuz reopening
Oil prices retreated after US President Donald Trump struck a more optimistic note on the prospects of a lasting ceasefire with Iran, offering markets a breather after weeks of turbulence. Brent crude eased toward $98 a barrel, while US benchmark West Texas Intermediate hovered near $93, reversing part of the previous session's sharp gains.
The pullback followed Trump's assertion that Tehran had signalled willingness to accept terms it has long resisted, including reopening the strategically critical Strait of Hormuz. However, Iranian authorities have yet to publicly confirm any such concessions, leaving traders wary.
Despite the upbeat rhetoric, diplomats across the Gulf and Europe remain cautious. Officials indicate that a comprehensive US-Iran agreement could take up to six months, with calls growing to extend the current ceasefire to bridge that gap.
The conflict, now nearing its 50-day mark, has delivered a significant shock to global oil markets. Iran's move to halt much of the traffic through the Strait of Hormuz disrupted roughly a fifth of global crude flows. Compounding the strain, the US later enforced its own naval blockade, tightening supply further and amplifying volatility.
ALSO READ: 'Deal Looking Very Good': Trump Says Iran Agreed To Give Up Nuclear Weapon Ambitions
Volatility Cools, But Uncertainty Persists
After a period of extreme price swings, oil markets have begun to stabilise. Brent has traded within a narrower $10 range this week, a sharp contrast to the $38 fluctuations seen in mid-March. Options data also suggest easing volatility, with key indicators slipping to their lowest levels in weeks.
Still, Trump's shifting stance throughout the conflict has kept investors on edge. His remarks have frequently alternated between escalation warnings and diplomatic optimism, often triggering abrupt market reactions.
A parallel 10-day ceasefire between Israel and Lebanon has provided some relief, particularly given Israel's ongoing conflict with Hezbollah, a key Iranian ally. Tehran has previously tied broader de-escalation to developments on this front, adding another layer of complexity to negotiations.
ALSO READ: Explained: Can Iran Legally Charge Ships To Cross Hormuz?
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