Brent crude price has experienced a significant decline, falling about 11% to around $99 per barrel after reaching a high of $112 on Friday. This drop reflects ongoing market volatility influenced by geopolitical tensions in the Middle East.

In the latest trading session, international benchmark Brent crude futures for May delivery climbed more than 4% to $104.49 per barrel. Meanwhile, U.S. West Texas Intermediate futures for May also rose over 4%, ending at $92.35 per barrel.

The Strait of Hormuz, a critical chokepoint for global oil supplies, was handling about 20% of the world’s seaborne oil until recent conflicts escalated. Iranian state media reported that Tehran would allow safe transit through the strait, except for vessels associated with its ‘enemies.’

President Donald Trump commented on the situation, stating, “I AM PLEASE TO REPORT THAT THE UNITED STATES OF AMERICA, AND THE COUNTRY OF IRAN, HAVE HAD, OVER THE LAST TWO DAYS, VERY GOOD AND PRODUCTIVE CONVERSATIONS REGARDING A COMPLETE AND TOTAL RESOLUTION OF OUR HOSTILITIES IN THE MIDDLE EAST.” This statement, however, has been met with skepticism.

Despite the optimism expressed by the U.S. administration, analysts note that oil prices remain well off their lows. José Torres remarked, “Despite the exuberance on Wall Street, ladies and gentlemen, oil is well off its lows after Tehran denied conducting any weekend negotiations with Washington.”

The recovery in oil prices on Tuesday suggests lingering skepticism over the president’s claims, particularly given Iran’s refutation of any negotiations.

As the situation develops, market observers are closely monitoring the geopolitical landscape, which could further impact oil prices in the coming days. Details remain unconfirmed.

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