Oil prices little changed on Tuesday

Oil prices were little changed on Tuesday as markets weighed signs that Donald Trump may end the Iran war against ongoing supply risks from the closure of the Strait of Hormuz, which carries about a fifth of global oil flows.

Brent crude for May edged up 0.16 per cent to $112.96 per barrel, while US West Texas Intermediate for May fell 0.24 per cent to $102.63 after earlier gains.

Analysts said the price dip reflects expectations of a potential de-escalation, but any sustained impact depends on fully restoring flows through the Strait of Hormuz. Reports indicated Trump is willing to end military action even if the waterway remains largely closed, while warning of further escalation if Iran does not reopen it.

Iran’s effective closure of the strait has driven Brent up 59 per cent and WTI 58 per cent in March, marking record monthly gains, as supply concerns intensified. Shipping risks also increased after a tanker operated by Kuwait Petroleum Corporation was reportedly struck near Dubai, raising fears of spills and further disruptions.

Tensions have also spread to the Bab El-Mandeb after Houthi missile attacks, threatening another key trade route. Saudi exports have been rerouted via the Red Sea, with shipments to Yanbu surging to 4.658 million barrels per day last week.

Analysts warned that prolonged disruptions could tighten supply further and push prices higher, as global inventories decline and geopolitical risks persist.

Attribution: Reuters