Oil Falls Further, Market Heeds Trump's Signals!
Oil prices continued to weaken as market participants assessed that US President Donald Trump was pushing for an end to the Iran war that had previously shaken global energy markets. Investors' primary focus remains on the Strait of Hormuz, a vital energy trade route that has yet to return to normal shipping.
West Texas Intermediate (WTI) fell as much as 1.8% to US$98.37 per barrel after weakening 1.2% on Wednesday. Trump is scheduled to deliver a prime-time address at 9 p.m. Eastern Time, with a message that the operation could end in two to three weeks, according to a White House official.
The conflict has effectively closed the Strait of Hormuz, holding back supplies of crude oil, gas, and products like diesel to the global market. This has pushed up energy prices and fueled concerns about inflationary pressures. Although oil futures prices have fallen in recent days, the US benchmark remains nearly 50% higher than before the war.
However, even if the conflict subsides as Trump has targeted, the restoration of supply flows is not expected to be immediate. Normalizing shipping through Hormuz will take time, while some energy infrastructure has reportedly suffered damage and risks requiring lengthy repairs. At the same time, the buildup of US troops in the region is keeping markets on edge.
Meanwhile, the International Energy Agency (IEA) warned that some countries could face energy rationing as supply shocks deepen this month. Gas stations from France to Australia reportedly ran out of stock, highlighting that supply chain disruptions are beginning to be felt at the consumer level.
Diplomatic developments also have the potential to add to volatility. Trump said Tehran had requested a ceasefire, but Iran stated that the Strait of Hormuz would not be opened simply because of the US leadership's "absurd actions" and emphasized that the decision would involve Iran and Oman. Investors have flooded the options market, anticipating various scenarios, from a sharp decline if the conflict quickly subsides to a renewed surge if supply disruptions persist. (asd)
Source: Newsmaker.id
