The price of oil stabilizes on Tuesday amid the possibility of a lull on the Iran war front, following press reports of a potential end to the American military campaign by Donald Trump.
“Donald Trump could show a bit more conciliation”
Around 08:35 GMT, 10:35 Paris time, the price of a barrel of North Sea Brent oil for delivery in May was down 0.05% at $112.60.
Its American equivalent, the West Texas Intermediate barrel 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 day before, when the American president threatened to “destroy” Iranian power plants, oil wells, and Kharg Island, a key 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 response?
According to the newspaper, Washington would seek to diplomatically persuade Tehran to unblock this strategic passage where usually a fifth of the world’s oil transits.
However, the drop in prices remains very modest, and Iran’s willingness to stop the war is also in question, especially as a Kuwaiti-flagged tanker was hit by a drone strike near the port of Dubai last night, according to Emirati authorities.
“The question remains how willing Iran is to give up the conflict, even allowing for the resumption of maritime traffic, and relinquishing its power to hold the global economy hostage,” said John Evans.
Also in positive news for the market, Beijing announced on Tuesday that three Chinese boats recently crossed the Strait of Hormuz and expressed “gratitude” to the parties involved, without specifying who they were.
