PORTALBERITA.CO.ID - Global crude oil prices experienced a significant decline on Thursday, reversing course from recent highs associated with escalating tensions in the Middle East. This market reaction followed a public announcement by US President Donald Trump suggesting a potential peace agreement had been reached with Iran.
Brent crude futures settled near US$90 per barrel, marking a 2.9 percent drop during post-settlement trading following the White House statements. The reduction in prices signals that markets are pricing in a substantial easing of geopolitical risk premiums that had previously driven up energy costs.
The positive market movement occurred even as semi-official reports emanating from Tehran indicated that Iran had not yet formally approved the text of any finalized agreement. This discrepancy highlights the market's immediate sensitivity to high-level political declarations from Washington.
Concurrently, maritime activity through the Strait of Hormuz—a vital global transit point handling approximately one-fifth of the world's seaborne oil—has shown an uptick. This increase comes after a confidential US operation began bolstering regional maritime trade security in the critical waterway.
Despite this apparent de-escalation, underlying energy supply metrics suggest persistent strain across global inventories. As reported by Businesstimes, US crude stockpiles contracted by 15 million barrels just last week, while fuel reserves in Singapore have reached their lowest recorded levels since 2013.
President Donald Trump directly communicated the development, stating, "just made a great settlement of the war with Iran" said Donald Trump, President of the United States.
The US leader further indicated that the formal document signing ceremony could potentially take place later this weekend in Europe, noting Vice-President JD Vance’s expected attendance.
Furthermore, the immediate threat of military action was withdrawn by the administration. "cancelled the scheduled strikes" said Donald Trump, President of the United States. This cancellation effectively reversed previous warnings from Washington concerning the seizure of the Kharg Island oil terminal, a key facility for Iranian petroleum exports.
These rapidly shifting pronouncements from the US government have complicated the operational environment for energy market participants. Frank Monkam, Head of Cross Asset Macro Strategy and Trading at Buffalo Bayou Commodities, noted that these conditions are "constraining oil traders’ ability to confidently deploy risk in the market" said Frank Monkam, Head of Cross Asset Macro Strategy and Trading at Buffalo Bayou Commodities.
