Global oil prices are showing a decline amid rising expectations for new negotiations between the United States and Iran. This comes after a significant spike in prices during the previous trading session, when the market reacted to geopolitical tensions in the Middle East.
This is reported by Finway
Price Dynamics of Brent and WTI Oil
On Tuesday, April 21, Brent crude oil futures fell by 54 cents, or 0.6%, reaching $94.94 per barrel. American oil West Texas Intermediate (WTI) for May delivery decreased by $1.11, or 1.2%, to $88.50 per barrel. The June WTI contract dropped by 76 cents, or 0.9%, trading at $86.66.
Just the day before, both major benchmarks showed significant increases: Brent rose by 5.6%, while WTI increased by 6.9%. This spike was attributed to events surrounding the Strait of Hormuz: Iran temporarily blocked passage, and the US seized an Iranian cargo ship within the country’s port blockade.
Negotiation Prospects and Market Impact
Despite the risks of new disruptions in oil supply, investors are expressing optimism regarding the potential continuation of the ceasefire or even the conclusion of a final agreement. ING experts note that positive expectations regarding the negotiations between Washington and Tehran are shaping the current dynamics in energy markets.
According to various sources, Iran may join peace talks in Pakistan mediated by Islamabad. Meanwhile, Iran’s chief negotiator and parliamentary speaker Mohammad-Bagher Ghalibaf emphasizes the unwillingness to engage in dialogue under pressure:
“Tehran will not engage in dialogue under the threat of coercion.”
Currently, shipping through the Strait of Hormuz, which accounts for about 20% of global oil exports, remains partially blocked. According to forecasts from the Citi analytical group, if the blockade continues, the global market could lose up to 1.3 billion barrels of oil, with prices rising to $110 per barrel in the second quarter of 2026.
It is worth noting that last Friday, oil prices plummeted by more than 9%, but by Monday, they had risen by over 5% amid concerns regarding the potential collapse of the ceasefire between the US and Iran following the seizure of the Iranian cargo ship by American forces.