After a 1.5% drop on Tuesday, West Texas Intermediate or US crude for the May contracts remains near the mark of $102 a barrel, while the June contracts are near $93 a barrel. Brent Crude fell 3.5% overnight for the June contract at $103.5 a barrel, while the May contract expired at levels of $118 overnight.
Oil prices dropped after multiple reports indicated that Iran is willing to end the war, albeit with conditions. US President Donald Trump has also indicated that the US will leave Iran in the next two to three weeks, and that a deal could still be reached with them, although that is not a pre-requisite for them to leave.
Amidst reports of de-escalation, a third US aircraft carrier is headed to the region and uncertainty remains over a ground invasion of Iran before operations come to an end.
The closure or choking of flows through the Strait of Hormuz resulted in Brent crude reporting its best monthly advance on record in March, and has also resulted in a disruption to the supply of gas to global markets, driving energy prices higher and stoking inflation fears. The retail price of US gasoline topped $4 a gallon for the first time since August 2022
The number of vessels transiting Hormuz with their signals on is ticking higher, with weekly two-way transits climbing to an average of seven vessels through Monday, up from five the previous week, according to Bloomberg-compiled tracking data. Tehran has approved many of the transits.
(With Inputs From Agencies)
