Crude oil benchmarks saw a nearly 4% sell-off following signals of a potential cooling of tensions between Washington and Tehran. After yesterday’s sharp downward momentum, today’s session is marked by a sense of calm and price stabilization. Brent crude is currently trading at 95 USD (down 0.30%), while the WTI grade is priced at 88 USD.
A major catalyst for the markets was President Trump’s mention of ongoing discussions with Iran. Sentiment was further bolstered by signals from Tehran suggesting that the Strait of Hormuz might remain open for „non-belligerent” vessels. While this eased fears of a long-term supply paralysis, experts warn that we are merely seeing a reduction in the „risk premium” rather than a full return to normalcy.
The situation remains fragile—Iran officially denies any negotiations, and military operations in the region continue unabated. Furthermore, Shell has cautioned that Europe could face energy shortages as soon as next month, while Goldman Sachs notes that oil prices are currently driven by the probability of „tail-risk” events rather than standard market fundamentals.