Oil Prices to get low after Trump says US will end Iran war ‘Very Quickly’

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Oil prices are eased after US President Donald Trump asserted the war with Iran will end” very quickly”. This still keeps the investors cautious for the outcome of the peacetalks.

As per the sources, Brent crude oil futures fell by 45 cents to $110.83 a barrel by 0050 GMT and US West Texas Intermediate futures was down for 27 cents to $103.88.

These benchmarks fell by $1 on Tuesday after US Vice President JD Vance said that there are progress in US and Iran talks.

“Investors are keen to gauge whether Washington and Tehran can actually find common ground and reach a peace agreement, with the US stance shifting daily,” said Toshitaka Tazawa, an analyst at Fujitomi Securities as reported by Reuters.

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The ongoing US-Israeli war against Iran has intensified concerns over a global energy crisis after the effective closure of the Strait of Hormuz, a key shipping route that carries nearly 20 percent of the world’s oil supplies. The International Energy Agency has termed the situation the biggest disruption to global oil supply in recent years.

Amid fears of prolonged instability, countries are now relying heavily on commercial and strategic oil reserves to offset supply shortages. In the United States, crude oil inventories declined for the fifth consecutive week, according to market sources citing data from the American Petroleum Institute. Fuel stockpiles also recorded a fall.

A Reuters poll further projected that US crude inventories may have dropped by around 3.4 million barrels in the week ending May 15, with official data from the Energy Information Administration expected later on Wednesday.

Meanwhile, Citigroup has warned that Brent crude prices could soon touch $120 per barrel as markets continue to underestimate the risks of prolonged supply disruptions.

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