Oil slips after surge as Iran-US tensions keep markets on edge

Oil prices edged lower on Thursday, April 23, after posting strong gains in the previous session, as stalled peace talks between the United States and Iran and continued restrictions on shipping through the Strait of Hormuz kept markets volatile.

Brent crude futures fell 15 cents to $101.76 a barrel, after closing above $100 for the first time in more than two weeks on Wednesday. U.S. West Texas Intermediate (WTI) futures declined 14 cents to $92.82.

Both benchmarks had risen by more than $3 in the prior session, supported by larger-than-expected declines in U.S. gasoline and distillate inventories, as well as the lack of progress in negotiations between Washington and Tehran.

Despite U.S. President Donald Trump extending a ceasefire following mediation efforts by Pakistan, both countries continue to restrict shipping through the Strait of Hormuz, a key chokepoint that accounted for about 20% of global daily oil and liquefied natural gas flows before the conflict began at the end of February with attacks by the United States and Israel on Iran.

Tensions in the waterway remain high. Iran seized two vessels in the Strait of Hormuz on Wednesday, while the United States has maintained a naval blockade targeting Iran’s maritime trade. Iranian parliament speaker and chief negotiator Mohammad Baqer Qalibaf said a full ceasefire would only be meaningful if the blockade were lifted.

Shipping and security sources also reported that the U.S. military intercepted at least three Iranian-flagged tankers in Asian waters, redirecting them away from positions near India, Malaysia, and Sri Lanka.

Trump’s decision to extend the ceasefire came after he had previously warned of potential strikes on Iranian infrastructure, including power plants and bridges. The extension does not have a fixed end date, according to White House press secretary Karoline Leavitt.

Meanwhile, U.S. oil exports reached a record high, rising by 137,000 barrels per day to 12.88 million bpd, as buyers in Asia and Europe increased purchases amid supply disruptions linked to the conflict.

U.S. inventory data released on Wednesday showed mixed trends. Crude oil stocks rose by 1.9 million barrels, contrary to expectations in a Reuters poll for a 1.2 million-barrel draw. At the same time, gasoline inventories fell by 4.6 million barrels, exceeding forecasts for a 1.5 million-barrel decline, while distillate stockpiles dropped by 3.4 million barrels, compared with expectations for a 2.5 million-barrel decrease.

By Tamilla Hasanova