Brent Slips on Trump Report

Brent crude futures retreated to around $107 per barrel on Tuesday, reversing gains from earlier in the session following reports that President Donald Trump told aides he is willing to end the US military campaign against Iran even if the Strait of Hormuz remains largely closed, potentially strengthening Tehran’s control over the strategic waterway. Meanwhile, Iran struck a Kuwaiti oil tanker near a Dubai port, underscoring heightened risks for shipping in the Persian Gulf. Iran-backed Houthis in Yemen also entered the conflict by targeting Israel over the weekend, while Tehran is reportedly preparing to disrupt Red Sea shipping. These developments could further tighten energy flows from the Middle East, as two of the world’s main trade and energy corridors face potential disruption. The international oil benchmark remains on track for a record monthly surge of over 60%.

Brent crude futures eased toward $106 per barrel on Tuesday, but were still on track for a record monthly surge of over 60% as the Middle East conflict showed no signs of abating and continued to disrupt global energy markets. In the latest developments, Iran struck a Kuwaiti oil tanker near a Dubai port, highlighting heightened risks for shipping in the Persian Gulf. President Donald Trump also threatened strikes on Iran’s electricity plants, oil facilities, and desalination infrastructure if the Strait of Hormuz is not reopened, overshadowing his earlier indications that a deal with Iran could be near. Additionally, Iran-backed Houthis in Yemen entered the conflict by targeting Israel over the weekend, while Tehran is reportedly planning to disrupt Red Sea shipping. Such developments risk further tightening energy flows from the Middle East, as two of the main strategic waterways in the world for trade and energy supplies could potentially be cut off.

Brent crude oil futures were volatile near $112 a barrel on Monday, poised for a record monthly surge of more than 50% in March, as the ongoing Middle East conflict continues to disrupt energy markets. President Donald Trump threatened attacks on Iran’s energy infrastructure, overshadowing his remarks that a deal to end the hostilities could be near. Trump warned that if no agreement is reached soon and the Strait of Hormuz is not “immediately ‘Open for Business,’” the US could target Iran’s power plants, oil wells, and Kharg Island. Prices had already climbed earlier in the session following the deployment of additional US troops and the involvement of Yemen’s Iran-backed Houthis in the conflict. The war has nearly halted traffic through the Strait of Hormuz, with traders warning of further energy price spikes if the fighting continues.