The price of oil stabilizes on Tuesday amid the possibility of a lull in the war in Iran, following reports of a potential end to the American military campaign by Donald Trump.
“Donald Trump may 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 by 0.05% at 112.60 dollars.
Its American equivalent, the barrel of West Texas Intermediate, for delivery in the same month, was down by 0.44% at 102.43 dollars.
“Donald Trump may show a bit more conciliation,” said John Evans, an analyst at PVM Energy, compared to the previous day’s tone when the American president threatened to “annihilate” Iranian power plants, oil wells, and Kharg Island, a key point in Tehran’s oil industry.
According to the Wall Street Journal, Donald Trump has reportedly informed his advisers that he is ready to halt his military campaign, believing that forcing the reopening of the Strait of Hormuz would extend the conflict “beyond his four to six-week timeline.”
How will Tehran respond?
According to the newspaper, Washington wants to try and diplomatically persuade Tehran to unblock this strategic passage, through which a fifth of the world’s oil usually passes.
However, the drop in prices remains very modest, and Iran’s willingness to end the war is also in question, especially as 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, allow the resumption of maritime traffic, and relinquish its power to hold the world economy hostage,” said John Evans.
Also boosting the market, Beijing announced on Tuesday that three Chinese boats had recently crossed the Strait of Hormuz and expressed “gratitude” to the parties involved, without specifying who they were.
