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Oil prices retreated from yesterday’s peak after comments from US President Donald Trump suggesting that tensions in the Middle East could ease in the near term.
Expectations that some oil-related sanctions could be relaxed have also weighed on prices, as it would increase available supply and ease current tightness.
In addition, discussions among G7 countries about a potential coordinated release of strategic crude reserves have reinforced the downside pressure.
At the same time, insurance coverage initiatives and possible military escorts for tankers could help stabilise shipping flows from the region.
However, the short-term outlook remains uncertain, and price volatility is likely to persist as markets continue to react to incoming headlines. Supply from the Middle East is still exposed to disruption, particularly if tensions continue to affect maritime routes and energy infrastructure. Any prolonged restriction or closure of the Strait of Hormuz would significantly limit tanker traffic, forcing oil producers to curb output further due to storage constraints.
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