Oil prices have dropped over 7% to approximately $90 per barrel following U.S. President Donald Trump’s announcement that negotiations between Washington and Tehran could resume this weekend. The ongoing ceasefire between Israel and Lebanon is contributing to a cautious optimism in the markets. With the current U.S.-Iran ceasefire set to expire on April 21, the potential for a deal—especially one that limits Iran’s nuclear ambitions—could significantly impact oil supply dynamics.
The market is reacting to geopolitical developments rather than short-term fundamentals, with Brent and WTI both on track for weekly declines. The Strait of Hormuz remains a critical factor, as its partial blockage continues to restrict about 20% of global oil supply. If negotiations progress, prices could fall towards the $80 mark, while a breakdown could push Brent back above $100.
Market professionals should brace for continued volatility, as the balance between de-escalation hopes and ongoing supply disruptions will dictate price movements in the near term.
Source: xtb.com