The price of oil stabilised on Tuesday on the possibility of a lull in the Iran war front, 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 Paris time, the price of a barrel of Brent crude oil from the North Sea for delivery in May was down by 0.05% at 112.60 dollars.
Its American equivalent, the West Texas Intermediate barrel for delivery in the same month, decreased by 0.44% to 102.43 dollars.
“Donald Trump could show a bit more conciliation,” said John Evans, an analyst at PVM Energy, compared to the tone used the day before when the American president threatened to “annihilate” Iranian power plants, oil fields, 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 attitude?
According to the newspaper, Washington would like to try to diplomatically persuade Tehran to unblock this strategic passage, through which a fifth of the world’s oil usually passes.
But 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 global economy hostage,” said John Evans.
Also on the positive news front for the market, Beijing announced on Tuesday that three Chinese vessels had recently crossed the Strait of Hormuz and expressed its “gratitude” to the parties involved, without specifying who they were.
