Oil Rises, Market Digests US Signals on Hormuz
Oil prices rebounded after a highly volatile session, as the market responded to rapidly changing statements from the Trump administration regarding the Iran war and the status of shipping in the Strait of Hormuz. West Texas Intermediate (WTI) briefly rose as much as 5.3% to US$87.89 per barrel after plunging 12% on Tuesday, reflecting a market prone to headline-driven volatility.
Volatility increased after US Energy Secretary Chris Wright posted—and then deleted—a claim that the US Navy was escorting oil tankers through Hormuz. The White House later stated that no escort operation was taking place. The market also faced a series of conflicting social media messages from Trump, including about alleged mines in the strait. Trump said the conflict would end “soon,” but added that it would not be this week, amid mounting economic and political pressure.
The effective disruption of shipping in Hormuz—a waterway that typically handles about a fifth of global oil flows—prompted several major producers to cut production and pushed up energy prices, including crude oil and natural gas. Tanker traffic has reportedly declined sharply, and market participants are now monitoring signs of a return to normal trade flows to determine whether the supply risk premium persists.
In a price update, WTI for April delivery rose 4.9% to US$87.55 per barrel at 6:12 a.m. Singapore time. Brent for May settlement closed down 11% at US$87.80 per barrel on Tuesday, confirming the large intraday swings that continue to dominate trading.
Source: Newsmaker.id
