By: Economy Middle east

Oil prices declined during Tuesday’s Asian trading session, offsetting previous gains, following reports that U.S. President Donald Trump informed advisors of his readiness to conclude the conflict with Iran without immediately ensuring the reopening of the Strait of Hormuz (SOH).

Brent crude futures for May decreased 0.03 percent , to $107.36 per barrel as of 8:28 Dubai time, despite a 2 percent increase earlier in the day. The May contract is set to expire on Tuesday, while the more active June contract was priced at $105.76. Meanwhile, U.S. West Texas Intermediate futures for May increased by 0.13 percent to $103.01 a barrel. 

Market analysts suggested the price reduction serves as a brief reaction to the potential end of military actions; however, significant price shifts are unlikely until maritime traffic through the Strait of Hormuz is fully restored. The Wall Street Journal, citing administration officials on Monday, reported that Trump expressed a willingness to halt the military campaign against Iran even if the Strait of Hormuz remains largely inaccessible, deferring its reopening to a later time.

The effective closure of the Strait of Hormuz—a vital passage for roughly one-fifth of the global oil supply and numerous liquefied natural gas tankers—has driven Brent futures up by 59 percent during March, marking its largest monthly increase on record. Similarly, WTI has climbed 58 percent this month, the highest rise since May 2020.

Saudi Arabian crude exports have been diverted through alternative routes. According to Kpler data, volumes redirected from the Gulf to the Red Sea port of Yanbu reached 4.658 million barrels per day last week, representing a substantial increase from the January and February average of 770,000 bpd. In the United States, a preliminary Reuters poll from Monday indicated that crude oil stockpiles, along with distillate and gasoline inventories, likely decreased last week.