Oil prices retreat slightly as 30 vessels pass through the Strait of Hormuz, but supply risks persist due to stalled US-Iran talks and reduced flows.
West Texas Intermediate crude oil trades around $97.60 per barrel, trimming earlier gains as geopolitical tensions ease marginally. The price remains on track for a weekly rise of over 6% due to ongoing disruptions in the Strait of Hormuz, a critical chokepoint for global oil shipments.
The International Energy Agency reported a decline of approximately 4 million barrels per day in crude and fuel flows through the Strait during March and April. Market anxiety lingers despite reports of 30 vessels successfully navigating the route, as recent seizures and attacks heighten supply concerns.
Diplomatic efforts to resolve the US-Iran conflict have stalled, with President Trump describing the current ceasefire as fragile. Meanwhile, China’s interest in increasing US oil purchases could shift trade dynamics, though the near-term supply outlook remains uncertain.