During Tuesday, Brent crude oil experienced a decline, and around 15:00 GMT, its price fell below 90 dollars, driven by indications of a reduction in tensions regarding the war in Iran, following the announcement from U.S. President Donald Trump regarding the conclusion of the conflict. At 15:26 GMT, the price of Brent was at 87.46 dollars per barrel for May delivery, representing a decrease of 11.46% compared to the previous day’s close of 98.96 dollars. On Monday, European oil had reached its highest intraday increase, with a rise of 29%, hitting 119.50 dollars, its highest level since the onset of the war in Ukraine in February 2022. Analyst Fawad Razaqzada from Forex.com points out that the fall in oil prices is not solely attributable to Trump’s statements, but also to the announcement from G7 countries regarding their consideration of releasing oil reserves to help stabilise prices. Razaqzada notes that the release of reserves can only provide temporary relief as long as the blockade in the Strait of Hormuz persists, halting production in oil-producing countries in the Middle East, as they cannot export their shipments. Amin Nasser, the CEO of Aramco, Saudi Arabia’s state oil company, stated that his company could have the port of Yanbu operational in a few days, located on the country’s west coast. This will allow it to bypass the Strait of Hormuz and export 5 million barrels daily through the Suez Canal.
