Oil Prices Fall on Hopes of US–Iran Ceasefire Talks

Global oil prices dropped on Monday (6 April) amid uncertainty over ongoing ceasefire negotiations between the United States and Iran, coupled with concerns over disrupted supply through the Strait of Hormuz.

According to Reuters, Brent Crude fell by 64 cents (0.6%) to $108.39 per barrel, while West Texas Intermediate (WTI) dropped by $1.33 (1.2%) to $110.21 per barrel.

This comes after a sharp surge last Thursday, when prices jumped significantly due to fears of prolonged disruption in the Strait of Hormuz.

Although Iran has allowed limited tanker movements (particularly from friendly countries), the overall oil flow remains severely restricted since the war began on 28 February. This has forced refineries in Asia and Europe to seek alternative sources, pushing US oil prices to record highs.

Meanwhile, OPEC+ agreed on Sunday to increase output quotas by 206,000 barrels per day for May. However, experts say this increase is largely “on paper” as major producers are currently unable to raise output due to the ongoing conflict and infrastructure damage.

Russia’s oil exports have also been badly hit by Ukrainian drone attacks on its terminals.