Summary
- International oil prices plunged on news that the US and Iran may resume talks to end the war.
- June Brent crude futures and May WTI futures fell 4.6%% and 7.9%%, respectively.
- The International Energy Agency said the Middle East war and the blockade of the Strait of Hormuz caused the worst supply disruption on record, but that the crisis has not been fully reflected in crude futures prices.
Forecast Trend Report by Period
International oil prices plunged on expectations that the US and Iran will resume talks to end the war.
On April 14, June Brent crude futures settled at $94.79 a barrel, down 4.6% from the previous session, while May West Texas Intermediate crude futures closed at $91.28, a 7.9% drop.
News that US and Iranian negotiators are expected to return to the bargaining table later this week weighed on crude prices.
President Donald Trump also signaled talks could resume. In a phone interview with the New York Post on April 14, he said of negotiations with Iran to end the war, "Something could happen in the next two days, and it has become more likely that we'll go there."
Saudi Arabia is also urging the US to lift what was described as a "reverse blockade" of the Strait of Hormuz and return to negotiations, the Wall Street Journal reported.
Earlier, after talks with Iran to end the war collapsed, the US began a maritime blockade centered on the Strait of Hormuz at 10 a.m. Eastern Time on April 13 to cut off Iran's oil exports.
Separately, the International Energy Agency said in its April oil market report released that day that the Middle East war and the blockade of the Strait of Hormuz caused the worst supply disruption on record last month. IEA Executive Director Fatih Birol said crude futures prices do not yet fully reflect the crisis.
Ko Jung-sam, Hankyung.com reporter jsk@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
