Oil Prices Steady as Trump Hints at Ending War with Iran
Oil prices remained stable after US President Donald Trump again hinted that the war with Iran might be over soon, despite the continued deployment of additional US troops to the region and Tehran's insistence that no peace talks were underway. Brent crude was trading below $105 per barrel, after a 3.2% drop on Tuesday. Meanwhile, West Texas Intermediate was hovering around $102 per barrel.
Trump, who is scheduled to address the nation at 9 p.m. local time, said the US could leave Iran within the next two to three weeks. He also indicated that a deal with Tehran was possible, but not a prerequisite for ending the war. Trump's remarks showed uncertainty, as he had previously fluctuated between saying a deal was imminent and warning that military operations could be escalated.
Trump administration officials have not yet detailed who they spoke with in Iran. Iranian Foreign Minister Abbas Araghchi told Al Jazeera that he had received a message from the US envoy to the Middle East, but that no formal negotiations were underway. Iran has also set several conditions, including maintaining sovereignty over the Strait of Hormuz. While the war may end within Trump's stated timeframe, restoring normal flow through the Strait of Hormuz and restoring energy facilities affected by the conflict will take time.
Meanwhile, tensions remain, with the deployment of a third US aircraft carrier strike group heading to the Middle East. Markets remain anxious about the possibility of a deadly ground invasion by American forces into Iran. Trump himself has stated that US military objectives have been largely achieved and that the US will leave the region if Tehran cannot obtain nuclear weapons, claiming that the current regime is better than the previous one.
Looking ahead, analysts predict that the oil market will continue to be shrouded in uncertainty in the coming weeks. Despite the potential for de-escalation, the impact of lingering tensions in the Strait of Hormuz, a vital artery for global energy trade, will continue to exert downward pressure on energy prices. If further talks between the US and Iran are achieved, the market will likely respond by stabilizing oil prices. However, if tensions escalate again, oil prices will likely fluctuate again, with the potential for price spikes to trigger a global inflation crisis. (asd)
Source: Newsmaker.id
