Oil prices dropped on Friday morning after US President Donald Trump announced a halt in strikes on Iran’s energy facilities for 10 days. He also announced that peace talks with Iran were going on well.
Moreover, Brent crude oil prices declined by 90 cents, or 0.8%, to trade at $107.11 per barrel in early trade. US West Texas Intermediate crude oil prices declined by 83 cents, or 0.88%, to trade at $93.65 per barrel.
Thus, the decision by Trump to halt strikes on Iran’s energy facilities for 10 days was announced through his social media platform, Truth Social. He announced that he was halting strikes on Iran’s energy facilities until Monday, April 6, at 8 pm Eastern Time, as requested by Iran.
Trump also announced that Iran had let 10 oil tankers, which were flying the Pakistan flag, through the Strait of Hormuz as a sign of goodwill.
Mixed signals from both sides
On Thursday, prices had jumped sharply on fears of wider fighting. Brent rose 5.7% and WTI gained 4.6%. But Trump’s latest comments triggered a quick pullback. Brent is now on track for its first weekly decline in six weeks.
An Iranian official told Reuters that Tehran carefully reviewed a 15-point US proposal delivered through Pakistan. However, the official called the plan “one-sided and unfair.”
Despite the pause, the US has already sent thousands more troops to the Middle East. Trump is still weighing whether to use ground forces to take control of Iran’s key oil hub at Kharg Island.
So far, the conflict has taken nearly 11 million barrels of oil per day off the global market.
Many traders now seem to believe the fighting could end soon and supplies will return to normal relatively quickly.
