Oil prices declined on 14 April as potential discussions to resolve the US-Israel conflict with Iran appeared to reduce supply risks linked to the Strait of Hormuz blockade, reported Reuters.
By 08:28 GMT, Brent crude had decreased by $0.62, around 0.6%, to $98.74 per barrel (bbl).
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Meanwhile, US West Texas Intermediate (WTI) had dropped by $2.30, or 2.3%, to stand at $96.78/bbl.
In the earlier session, both benchmarks had gained, with Brent increasing by more than 4% and WTI close to 3% following the US military’s initiation of a blockade on Iranian ports.
Last month, oil prices saw a record 50% increase.
The International Energy Agency (IEA) reported that attacks on Middle Eastern energy infrastructure and Iran’s closure of the strait caused the most significant oil supply disruption recorded, with a loss of 10.1 million barrels per day (mbbl/d) in March.
Despite the blockade extending to the Gulf of Oman and the Arabian Sea, Nato allies including Britain and France opted not to join the blockade, advocating instead for the reopening of the waterway.
Meanwhile, Iran threatened retaliatory actions against ports in neighbouring Gulf countries following unsuccessful talks in Islamabad.
According to five sources cited by the news agency, the US and Iranian negotiation teams may return to Islamabad later this week.
A US official mentioned ongoing efforts to reach an agreement and Pakistani Prime Minister Shehbaz Sharif confirmed that attempts are still in progress.
The IEA updated its global oil supply and demand outlook, projecting that demand will be 80,000 barrels per day lower, while supply will fall by 1.5mbbl/d by 2026.
Shipping data revealed that a third Iran-linked tanker entered the Gulf via the Strait of Hormuz on Tuesday, the first full day of the US blockade on vessels bound for Iranian ports, according to Reuters.
As these three vessels were not destined for Iranian ports, they were exempt from the blockade.
LSEG data indicated that the Panama-flagged Peace Gulf, a medium-range tanker, was heading to the port of Hamriyah in the United Arab Emirates.
According to Kpler data, this vessel typically transports Iranian naphtha, a petrochemical feedstock, to other non-Iranian Middle Eastern ports for export to Asia.
