The cost of Brent crude oil for delivery in May decreased by 10.92% in the London futures market due to the possibility of a reduction in tensions in the Middle East. North Sea oil finished at the ICE in London at $99.94, which represents a decrease of $12.25 compared to the closing of the session on Friday.
The announcement by US President Donald Trump regarding a five-day delay in attacks on Iran’s energy infrastructure was well received by the market, while negotiations are ongoing with Iran. Tehran clarified that there are currently no discussions taking place.
The market remains attentive to the developments of the war that began on 28 February by the US. Israel is facing Iran, which has led to an increase in hydrocarbon prices due to the closure of the Strait of Hormuz, controlled by Tehran. The consultancy firm Oxford Economics warned that the conflict will disrupt energy markets for the remainder of the year. The company anticipates that the Strait of Hormuz will remain impassable, at least until May, causing disruptions in trade during the second and third quarters. Moreover, the US attacks have been postponed.
