Global oil prices reversed course on 30 April after Brent crude briefly reached $126.41 a barrel (bbl), its highest level since March 2022, driven by fears of prolonged oil supply disruption in the Strait of Hormuz.
The June Brent futures contract was down $2.05, or 1.7%, at $115.98/bbl by 10:16 GMT, reported Reuters.
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The June contract is set to expire on 30 April, while the July contract, which has higher trading volume, was at $109.93/bbl, a decrease of $0.51, or 0.5%.
The Strait of Hormuz has remained closed for two months since the war between US-Israel and Iran broke out in late February.
The waterway accounts for around 20% of the world’s oil and gas supplies. Brent prices have more than doubled since the beginning of the year, fuelling inflation and pushing pump prices higher across the world.
The US is pushing for other countries to form an international coalition to restore freedom of navigation in the Strait of Hormuz, according to a State Department cable seen by the news agency.
The cable said the US was inviting other nations to join the coalition to enable ships to navigate the waterway after traffic through it stalled.
Efforts to resolve the conflict have reached an impasse and Washington has imposed a naval blockade on Iran’s oil exports.
US President Donald Trump is scheduled to receive a briefing on plans for a series of military strikes on Iran, aiming to bring Tehran back to negotiations on its nuclear programme, according to an Axios report, citing unidentified sources.
The report drove gains in oil prices earlier in the day, with the benchmark Brent crude contract topping $125/bbl at one point, partly on technical factors tied to the expiry of the June contract.
Two large sell orders for June Brent then traded shortly before 09:30 GMT, according to traders and LSEG data.
On 29 April, Tehran warned of “unprecedented military action” against the US’ continued blockading of Iran-linked vessels.
Prior to this, Trump held talks with oil executives on 28 April, where discussions covered options for sustaining the blockade and limiting its impact on consumers.
A White House official said the meeting covered “the steps President Trump has taken to alleviate global oil markets and steps we could take to continue the current blockade for months if needed and minimise impact on American consumers”.
Earlier this week, the United Arab Emirates said that it will quit the Organisation of the Petroleum Exporting Countries, a move that will allow the country to boost its oil output independently.
