Oil Prices Hold Near Highs Amid Iran War Uncertainty
Oil prices remained close to multi-year highs during Asian trading on Wednesday, as investors assessed mixed signals surrounding the Iran conflict. Market sentiment was influenced by comments from U.S. President Donald Trump, who suggested a potential end to the war without guaranteeing the reopening of the Strait of Hormuz.
Brent crude futures for June rose 0.5% to $104.47 per barrel, while U.S. West Texas Intermediate (WTI) crude for May gained 0.8% to $102.21 per barrel.
Strong Price Movements and Monthly Gains
In the previous session, Brent crude for May surged roughly 5% to settle at $118.31 per barrel, while WTI closed slightly lower at $101.62.
Brent prices recorded an exceptional monthly increase of more than 63% in March, driven largely by concerns over prolonged supply disruptions linked to geopolitical tensions.
Trump Signals Possible Exit Without Hormuz Reopening
President Trump stated that the United States could withdraw from the conflict within two to three weeks, adding that Iran would not necessarily need to agree to a deal for hostilities to end.
However, reports indicate that Washington may be willing to end military operations even if the Strait of Hormuz remains largely closed, raising concerns about ongoing supply constraints in global oil markets.
Iran Signals Willingness to End Conflict
On the Iranian side, President Masoud Pezeshkian signaled readiness to end the conflict, while reiterating key conditions. This has strengthened expectations that negotiations could take place, although any agreement is likely to depend on specific terms.
Supply Disruptions Continue to Support Oil Prices
Despite diplomatic developments, market reactions have remained cautious. Traders are balancing hopes for a ceasefire with the reality of ongoing disruptions to global oil supply.
The Strait of Hormuz—responsible for transporting roughly one-fifth of the world’s oil—has experienced a sharp decline in tanker traffic during the conflict, significantly limiting exports and keeping prices elevated.
Industry Warnings Highlight Ongoing Risks
Additional support for oil prices came from industry commentary. Mike Sommers emphasized that reopening the Strait of Hormuz is crucial for stabilizing global energy markets.
He warned that without the restoration of normal shipping flows, oil prices are likely to remain under upward pressure across major consuming regions.
