FX.co ★ Oil Prices Pare Some Losses

WTI crude futures traded lower at around $100.7 per barrel at the start of April but recovered most of their earlier losses as expectations for a rapid de-escalation of the conflict with Iran waned. US President Donald Trump stated that Iran is seeking a ceasefire and that Washington would consider one only once the Strait of Hormuz is open, free, and secure, adding that until then, the US is “blasting Iran into oblivion.” Earlier, he had indicated that the US could end its military involvement within two to three weeks, a remark that briefly pushed oil prices down to as low as $96.5 per barrel. In practice, however, the Strait of Hormuz remains largely closed, with attacks continuing across the Gulf. Approximately 25% of global seaborne oil trade passes through the Strait, with about 80% of that volume destined for Asian markets. In March, oil prices jumped more than 50%, posting their largest monthly gain since May 2020 and reaching their highest levels since 2022.