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Oil prices remained elevated in Asian trading on Wednesday, as investors balanced tentative diplomatic signals on Iran against ongoing supply disruptions stemming from the closure of the Strait of Hormuz.
As of 20:18 ET (00:18 GMT), Brent crude futures for June delivery rose 0.5% to $104.47 per barrel, while U.S. West Texas Intermediate (WTI) crude for May gained 0.8% to $102.21 per barrel. The move follows a volatile prior session, during which Brent’s front-month contract surged about 5% to settle at $118.31 per barrel.
Brent crude posted a record monthly gain of more than 63% in March, reflecting intense market concerns over prolonged supply disruptions.
Conflicting Signals on Iran Keep Markets Cautious
Market sentiment has been shaped by mixed messages from both Washington and Tehran. Donald Trump said the United States could withdraw from the conflict within two to three weeks, adding that Iran may not need to agree to a deal for hostilities to end.
At the same time, reports indicate that Trump is willing to conclude the military campaign even if the Strait of Hormuz remains closed—an outcome that would leave supply constraints largely unresolved.
On the Iranian side, President Masoud Pezeshkian signaled readiness to end the conflict, while reiterating key شروط for any agreement. This combination of openness and conditions has reinforced expectations that negotiations could emerge, but remain uncertain.
Despite these developments, market reaction has been muted, as traders weigh the potential for de-escalation against the ongoing disruption to global energy flows.
Hormuz Closure Continues to Drive Supply Risks
The Strait of Hormuz remains the central factor supporting oil prices. The critical waterway, which handles roughly one-fifth of global oil supply, has seen tanker traffic collapse amid the conflict, sharply restricting exports.
This sustained disruption continues to underpin elevated prices, even as geopolitical rhetoric suggests a possible easing of tensions.
Further reinforcing the supply concerns, Mike Sommers emphasized that reopening the strait is essential for stabilizing global markets. He warned that without restored flows, oil prices are likely to continue rising across major consuming regions.
Market Outlook
Oil markets remain caught between competing forces. While diplomatic signals offer some hope for de-escalation, the lack of clarity around negotiations and the continued closure of key transit routes suggest that supply risks will persist.
As a result, prices are likely to remain elevated, with volatility driven by geopolitical headlines and any shifts in the status of the Strait of Hormuz.
