Oil prices stabilize on Tuesday amid the possibility of a lull in the Iran war, following reports of a potential end to the American military campaign by Donald Trump.
“Donald Trump could show a bit more conciliation”
At 08:35 GMT, 10:35 in Paris, the price of a barrel of Brent crude from the North Sea, for delivery in May, was down 0.05% at $112.60.
Its American equivalent, a barrel of West Texas Intermediate, for delivery in the same month, was down 0.44% at $102.43.
“Donald Trump could show a bit more conciliation,” said 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 the Kharg terminal, a critical point in Tehran’s oil industry.
According to the Wall Street Journal, Donald Trump reportedly told his advisors that he was 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 timeline.”
What about Tehran’s stance?
According to the newspaper, Washington wants to try to diplomatically persuade Tehran to unblock this strategic passage, through which a fifth of the world’s oil normally transits.
But the drop in prices remains very modest, and Iran’s willingness to end the war is also in question, especially after a Kuwaiti-flagged tanker was reportedly hit by a drone strike near the port of Dubai last night, according to Emirati authorities.
“The question remains as to whether Iran is willing to give up the conflict, even to allow the resumption of maritime traffic, and to relinquish its power to hold the global economy hostage,” said John Evans.
Also, in positive news for the market, Beijing stated on Tuesday that three Chinese vessels had recently passed through the Strait of Hormuz and expressed its “gratitude” to the parties involved, without specifying who they were.
