West Texas Intermediate, or the US crude variant is down by less than 1% after a drop of as much as 1.6% after Trump posted on Truth Social that he will be pausing further attacks on Iran’s energy infrastructure by another 10 days to April 6, based on Iran’s request.
The May contracts of Brent crude had ended at $108 a barrel overnight, while the June contracts also ended near levels of $102 a barrel.
Oil prices have seen a sharp rally this month with trading being very volatile as the US-Iran war has rocked the West Asia region, a major oil producer and key global supplier. With Iran choking off the Strait of Hormuz, energy flows through the region have been severely restricted. Attacks on energy infrastructure of Gulf countries have also stoked supply fears.
US crude prices have surged by almost 40% so in March, and petroleum product costs from diesel to jet fuel have rallied even more, burdening businesses and consumers. The increases have triggered concern about a simultaneous spike in global inflation and slowdown in growth.
“We’re now thinking forward, and not about a resolution,” said Carl Larry, oil and gas analyst at Enverus. “We’re heading into another weekend with risk still to the upside, and waiting for something worse rather than something better.”
(With Inputs From Agencies)
