By: Economy Middle east

Global oil prices eased on Wednesday as market participants weighed statements from U.S. President Donald Trump indicating that the military conflict with Iran could conclude “very quickly”. Despite the diplomatic optimism, trading sentiment remained cautious due to ongoing vulnerabilities in Middle East crude exports.

Futures trade moderately lower

Brent crude oil futures dropped 19 cents, or 0.17 percent, to $110.79 a barrel, while U.S. West Texas Intermediate futures decreased 33 cents, or 0.33 percent, to $103.68 a barrel.

The minor downward movement follows a sharper decline on Tuesday, where both benchmarks shed nearly $1. That sell-off was triggered by comments from U.S. Vice President JD Vance, who noted that Washington and Tehran were making headway in negotiations and that neither side desired a return to active hostilities.

Volatile rhetoric and market projections

The price drop was limited by a series of conflicting statements from the White House. Although President Trump suggested a swift path to a peace deal late on Tuesday, he also mentioned that the U.S. might conduct further military strikes against Iran, revealing he had previously come within an hour of launching an attack before choosing to postpone it.

Trump added that Iranian authorities are eager to secure a diplomatic resolution, though he warned that a military response remains on the table if an agreement is not reached soon.

Amid the uncertainty, financial institutions maintain an upside outlook for energy costs. Citi projected that Brent crude could climb to $120 a barrel over the near term, arguing that current market pricing fails to fully reflect the potential for extended supply blockades and broader geopolitical risks.

Shipping infrastructure and global stockpiles

Logistical strains persist around the primary maritime trade corridors. While a limited number of tankers have navigated the Strait of Hormuz, overall traffic stays significantly compressed compared to the pre-war average of roughly 130 vessels. On Wednesday, two Chinese supertankers carrying a combined 4 million barrels of crude departed the waterway after being stationary in the Gulf for more than two months.

To offset the regional supply deficit, consumer nations continue to draw down domestic energy reserves. For instance, U.S. commercial crude inventories fell for a fifth consecutive week, according to data from the American Petroleum Institute. Additionally, a Reuters survey forecasts an inventory decline of approximately 3.4 million barrels for the week ending May 15, while the official weekly report from the Energy Information Administration is scheduled for release later on Wednesday.