Oil prices fall as Trump says 34 ships passed Hormuz

• Brent down 1.45%, WTI loses 2.26%
• Trump says Iran wants peace deal
• US blockades Iranian ports

Oil prices fell in early Tuesday trade on speculation over possible progress in US-Iran peace talks, as President Donald Trump claimed Tehran was looking to strike a deal and said dozens of ships had sailed through the Strait of Hormuz.

Brent futures lost $1.44, or 1.45 percent, to $97.92 a barrel by 04:30 GMT, while US West Texas Intermediate crude declined by $2.24, or 2.26 percent, to $96.84.

Brent and WTI rose in the prior session. The US on Monday began preventing maritime traffic from entering or leaving Iranian ports, with Trump saying Iranian ships will be eliminated if they “come anywhere close to our blockade”.

In an April 13 post on Truth Social, the US president said “34 ships went through the Strait of Hormuz yesterday, which is by far the highest number since this foolish closure began”.

Iran effectively shut the strait after the US and Israel began strikes against the Islamic Republic on February 28. The waterway is a gateway for nearly a fifth of the world’s oil and gas supplies.

Talks in Islamabad between US and Iranian delegations ended without agreement on Sunday, with both parties saying “significant” differences remained.

Melbourne-based investment bank ANZ estimates that nearly 10 million barrels per day (bpd) of crude has been effectively removed from the market and a prolonged US blockade may curb an additional 3 to 4 million bpd, Reuters reported.

Gold and silver rise

Gold prices rose 0.7 percent to $4,774 an ounce early on Tuesday, while silver jumped more than 2 percent to $77.14 per ounce.  

The Saudi stock exchange closed 1 percent higher on Monday, driven by a 3 percent increase in Saudi National Bank.

Dubai’s main share index fell 0.8 percent, with a 2.5 percent drop in Emirates NBD and a 1.7 percent decline in Emaar Properties. 

The Abu Dhabi stock market closed 0.5 percent lower as Adnoc Gas fell more than 1 percent.

The Qatari index ended 0.1 percent lower, while the Muscat stock exchange rose 0.4 percent. 

Further reading:

• Oil up 7% as US set to block ships from Iranian ports
• Why Hormuz is no Suez or Panama
• The Hormuz islands that hold sway over global energy