West Texas Intermediate decline as oil prices ease

Agency Report

Oil prices continued to retreat on Wednesday, even as the Middle East conflict has persisted, with U.S President Donald Trump continuing military operations against Iran. 

Brent crude traded at 86.23 per barrel, down 3.57% from the previous close of $89.44.

US benchmark West Texas Intermediate (WTI) decreased 3.11% to $82.69 per barrel, compared with $85.35 in the previous session.

Experts have warned that a prolonged closure of the Strait of Hormuz would severely disrupt supply in many regions.

Oil markets experienced sharp volatility at the beginning of the week.

The price of Brent crude climbed to $114.3 per barrel on Monday, its highest level since June 2022, driven by supply concerns. Prices later retreated during the day after US President Donald Trump said the war with Iran could end soon.

However, prices declined on Tuesday after a now-deleted social media post by US Energy Secretary Chris Wright, claiming that the US Navy was escorting a tanker through the Strait of Hormuz, accelerated selling and deepened losses.

White House Press Secretary Karoline Leavitt later said the US Navy was not currently escorting any tanker or vessel but that such an option remained on the table. She added that, under Trump’s instructions, the US military is preparing additional scenarios to keep the Strait of Hormuz open.

Reports in US media that Iran had placed mines in the Strait helped prices partially recover after the sharp drop.

In a social media post, Trump said: “If Iran has placed any mines in the Strait of Hormuz, which we have no reports of, we want them removed immediately. If for any reason mines were placed and are not removed immediately, the military consequences for Iran will be at a level never seen before.”

In another post, Trump said some inactive mine-laying boats in the strait had been struck.