Brent futures fluctuated sharply as conflicting White House signals and algorithmic trading amplified volatility amid geopolitical risks.
Brent crude prices swung wildly, dropping to $93 per barrel before rebounding to $102.9 overnight, driven by shifting war headlines and thin market liquidity. Algorithmic trading and reduced participation from traditional traders exacerbated the moves, with prices settling at $100.2 at publication time.
The recent decline from around $115 earlier in the week was described as premature, with ongoing risks tied to the Strait of Hormuz. Suspicious trading activity ahead of White House announcements totaled approximately $7bn in March and April, according to reports.
Market sentiment shifted rapidly after comments on potential deal progress were followed by escalating threats, including warnings of military action against Iran if a proposal is rejected.