Oil Steady After Trump Delays Iran Energy Strike
Oil prices held steady after US President Donald Trump again pushed back the deadline for an attack on Iranian energy facilities, providing a short-term respite for the market but extending uncertainty about the war's course into April.
The global benchmark Brent oil traded just below $108 per barrel after erasing initial losses, while WTI held around $94.
Trump said Iran had asked for a seven-day pause, but he decided to grant it 10 days, bringing the new deadline to April 6.
This delay opens additional space for diplomacy and allows the US to bolster its military presence in the region. Reports indicate the buildup has included Marine Expeditionary Units and troops from the 82nd Airborne Division, while the Pentagon is reportedly considering additional ground troops. For the market, the combination of "additional time for talks" and the risk of military escalation creates two countervailing currents, keeping prices high but volatile.
Brent oil was on track for a sharp monthly rise in March after the US-Israel-Iran war rocked the energy-rich region and tightened supplies, particularly due to the near-total closure of the Strait of Hormuz, which restricts vital energy flows for the global economy. ING believes Trump's delay eases near-term pressure, but risks remain tilted to the upside as some 8 million barrels per day of supply are already offline and the large volume of traffic in the Persian Gulf remains vulnerable. Macquarie added that a scenario of a longer conflict could trigger the risk of significantly higher prices, as geopolitical premiums are unlikely to dissipate quickly.
On the diplomatic front, CNN reported that the Trump administration is attempting to arrange a meeting in Pakistan this weekend to discuss an "off-ramp," while the Financial Times reported that the UAE has expressed readiness to participate in a multinational maritime task force to reopen Hormuz. Tasnim reported that Iran is awaiting a response after rejecting the US's 15-point plan and putting forward its own conditions, including recognition of Tehran's authority over Hormuz.
The market will be monitoring concrete signals regarding the reopening of shipping lanes, changes in the intensity of attacks on the ground, and the response of Gulf states to the sea lane security plan.
Source: newsmaker.id
