The price of oil stabilizes on Tuesday amid the possibility of a lull on the Iran war front, following reports of a potential end to the American military campaign by Donald Trump.
“Donald Trump could be a bit more conciliatory,” says John Evans, an analyst at PVM Energy, compared to the tone used the previous day, when the American president threatened to “annihilate” Iranian power plants, oil wells, and Kharg Island, a crucial point in Tehran’s oil industry.
According to the Wall Street Journal, Donald Trump has indicated to his advisors that he is ready to halt his military campaign, believing that forcing the reopening of the Strait of Hormuz would prolong the conflict “beyond his four to six-week timetable.”
Washington reportedly wants to try to diplomatically persuade Tehran to unblock this strategic passage through which a fifth of world’s oil normally transits.
However, the drop in prices remains minimal, and the question of Iran’s willingness to end the war arises, especially after a Kuwaiti-flagged tanker was reportedly hit by a drone strike near the port of Dubai in the night, according to Emirati authorities.
“The question remains to what extent Iran is willing to give up the conflict, allow the resumption of maritime traffic, and relinquish its power to hold the global economy hostage,” according to John Evans.
Also, in positive news for the market, Beijing reported on Tuesday that three Chinese ships had recently passed through the Strait of Hormuz and expressed “gratitude” to the parties involved, without specifying who they were.
