The oil prices stabilize on Tuesday amid the possibility of a lull on the Iran war front, following media reports suggesting a potential end to the American military campaign by Donald Trump.
“Donald Trump could be more conciliatory”
Around 08:35 GMT, 10:35 in Paris, the price of Brent crude oil from the North Sea, for delivery in May, was down by 0.05% at $112.60.
Its American equivalent, the West Texas Intermediate barrel, for delivery in the same month, decreased by 0.44%, to $102.43.
“Donald Trump could be more conciliatory,” says John Evans, an analyst at PVM Energy, compared to the tone used the day before, when the American president threatened to “wipe out” Iranian power plants, oil wells, and Kharg Island, a crucial point for Tehran’s oil industry.
According to the Wall Street Journal, Donald Trump would have informed his advisors that he was ready to suspend his military campaign, believing that forcing the reopening of the Strait of Hormuz would prolong the conflict “beyond its four to six week schedule.”
What about Tehran’s attitude?
According to the newspaper, Washington would want to try diplomatically to obtain from Tehran the blockade of this strategic passage route, through which a fifth of the world’s hydrocarbons ordinarily pass.
But 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 reportedly hit by a drone strike near the port of Dubai in the night, according to Emirati authorities.
“The question remains about to what extent Iran is willing to give up the conflict, even authorize the resumption of maritime traffic, and renounce its power to hold the global economy hostage,” according to John Evans.
Also in positive news for the market, Beijing stated on Tuesday that three Chinese ships had recently crossed the Strait of Hormuz and expressed “gratitude” to the parties involved, without specifying who they were.
