Oil prices experienced a decline in a volatile trading session as market participants anticipated a national address by U.S. President Donald Trump pertaining to the situation in Iran. There is a growing desire among traders for clarity regarding whether Trump will indicate a de-escalation in tensions.
As of 9:15 p.m. ET, U.S. West Texas Intermediate (WTI) crude futures for May registered a decrease of 0.43%, settling at $98.42 per barrel. Meanwhile, the international benchmark, Brent crude, remained unchanged at $101.08 per barrel.
Earlier in the day, Trump conveyed via a post on Truth Social that Iran had requested a ceasefire, which stirred optimism for renewed oil tanker traffic through the Strait of Hormuz. This crucial maritime passage previously accounted for approximately 20% of global oil and gas flows but has seen a significant reduction in movement since the onset of hostilities involving the U.S.-Israel alliance and Iran on February 28.
According to Trump, Iran’s "New Regime President" has sought a ceasefire from the U.S., which he stated would only be considered if the Strait of Hormuz is "open, free, and clear." He remarked, "Until then, we are blasting Iran into oblivion or, as they say, back to the Stone Ages!" However, Iranian officials have refuted Trump’s assertions, claiming that the waterway's reopening would not be contingent upon his "absurd displays." The key shipping route is currently under the authority of the IRGC Navy.
Throughout the duration of the conflict, both parties have often presented conflicting narratives regarding the status of peace negotiations. Despite the mixed signals, reports have surfaced indicating that Trump harbors an expectation for a reduction in U.S. military operations directed at Iran within "two or three weeks." This prospect has injected uncertainty into oil markets, culminating in Brent crude slipping below $100 per barrel for the first time in a week following his comments.
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