Trump Promises Tanker Escorts, Oil Trims Gains
US President Donald Trump said the United States would ensure the safe transit of oil from the Middle East to prevent a potential energy crisis resulting from a war with Iran. This statement briefly calmed markets, before a New York Times report about Iranian intelligence officials' indirect approach to the US fueled speculation of a "way out" of the conflict and prompted a recovery in risk assets.
In energy markets, oil pared earlier gains after a sharp rally over the past two days. Brent was last up about 1.4% at US$82.52/barrel, while WTI rose about 0.5% to US$74.96/barrel on Wednesday.
Optimism in risk assets was evident in S&P 500 futures, which rebounded by about 0.3%, after a nearly 1% decline in the previous session. At the same time, selling pressure in global bonds eased, in line with a decline in demand for the dollar as a short-term hedge.
Meanwhile, gold continued to strengthen as a hedge, with spot gold rising around 2.2% to US$5,198.58/ounce on Wednesday, supported by safe-haven demand amid escalating tensions and a weakening dollar.
Although Trump's statement partially reduced the risk premium, the market still believes the recovery of oil flows will be slow, given shipping disruptions in the region and security risks in key logistics routes. In this context, the effectiveness of insurance and escort guarantees will be monitored, affecting ship operator decisions, insurance costs, and the normalization of traffic in the strategic waterway.
The next focus will be on developments in the Iran-US communication channel, the security status and flow of tankers in the Strait of Hormuz, and the response of oil prices to changes in geopolitical risk premiums. (alg)
Source: Newsmaker.id
