US President signals hope as oil prices start to fall
Oil prices have begun to decline (Photo: Getty Images)
Global oil prices fell amid hopes that Iran would resume negotiations with the US and Israel to end the conflict that had closed the Strait of Hormuz, reports Reuters.
Brent crude futures settled at $94.79 per barrel, down $4.57, or 4.6%, from the previous day. US West Texas Intermediate crude ended trading at $91.20 per barrel, down $7.80, or 7.87%.
Both benchmarks rose in the previous session: Brent gained more than 4% and WTI nearly 3% after the US military began a blockade of Iranian ports.
"There seems to be this hope in the market there is going to be a better outcome. All of this means the market had earlier priced in a lot of the disruption we've already seen," said John Kilduff, partner at Again Capital.
According to analysts, Brent prices are more sensitive to global supply disruptions than WTI prices.
"Resuming flows through the Strait of Hormuz remains the single most important variable in easing the pressure on energy supplies, prices and the global economy," the IEA said in a statement.
Against this backdrop, the IEA sharply lowered its forecasts for global oil supply and demand growth, cutting demand growth for 2026 by 80,000 barrels per day and expecting supply to fall to 1.5 million barrels per day.
Meanwhile, according to two traders and Reuters calculations, Russia's planned exports of oil products from the Black Sea port of Tuapse in April have been revised upward by about 60% to 1.27 million metric tons from 0.794 million tons in the previous plan.
What preceded this
On April 11, talks between the US and Iran on the nuclear program took place in Pakistan. They ended in nothing – Tehran refused to accept the American side's demands.
Following the talks' failure, Trump announced a naval blockade of the Strait of Hormuz. American ships will intercept any vessels that have paid Iran a transit fee.
Meanwhile, Trump warned: if Iranian armed forces attack American ships, the US will send the Iranians to hell.
Tehran responded to these statements. According to Iranian Parliament Speaker Mohammad Bagher Ghalibaf, soon everyone will look back with nostalgia on $4-5 gasoline.
Despite this, on April 14, information emerged that high-level talks between Iran and the US could continue in the coming days, and that consultations between the delegations' representatives have not ceased.
