Oil prices remained relatively stable on Tuesday as hopes of de-escalation strengthened, with US President Donald Trump reportedly considering ending the war.
However, a decline in oil prices did not occur as the Strait of Hormuz may remain under Iran’s control.
While the global benchmark Brent Crude was up 0.7 percent during Asian trade hours, WTI Crude rose 0.3 percent.
Still, Brent Crude remains at around $114 per barrel, over 70 percent higher than its pre-war prices. WTI Crude is also trading above the crucial $100 mark, at around $103.
According to reports, US President Donald Trump is willing to wind down the offensive against Iran soon, even if the Strait of Hormuz does not reopen.
His administration’s assessment shows that efforts to forcibly reopen the Strait could prolong the war beyond the preferred timeline of four to six weeks.
Before ending the war, the US would ensure it significantly weakens Iran’s naval and military capabilities.
While this could end the war, oil traders remain concerned that Iran may continue to control the Strait unpredictably, resulting in a muted price response.
President Trump had earlier extended the deadline for Iran to reopen the Strait to April 6, stating that both sides were having positive discussions to end the war.
However, Israel and Iran have continued to attack each other’s assets in the region.
Another development limiting price easing was Iran’s attack on a Kuwaiti oil tanker anchored at Dubai port. Al Salmi, the tanker with a capacity of 2 million barrels, was fully laden at the time of the attack.
The Strait is crucial for global energy markets as it facilitates about 20 percent of the world’s fuel trade.
