Oil prices declined sharply as President Trump announced that the war in Iran “should be ending pretty soon,” coinciding with a ceasefire between Israel and Lebanon that raised hopes for reduced supply disruptions. U.S. crude oil futures for May delivery fell 1.45% to $93.32 per barrel, while the international benchmark Brent for June delivery dropped 1.11% to $98.36 per barrel. The potential for a ceasefire extension and renewed negotiations between the U.S. and Iran has shifted market sentiment, although analysts warn of tightening physical market conditions due to ongoing disruptions in the Strait of Hormuz.

The anticipated easing of geopolitical tensions could lead to improved oil supply dynamics, but ING analysts caution that the situation remains precarious. They estimate that approximately 13 million barrels per day of supply is currently disrupted, with risks of further increases if U.S. sanctions escalate.

Market professionals should closely monitor developments in U.S.-Iran relations, as any breakdown in peace talks could significantly impact oil prices and market stability.

Source: cnbc.com