Oil Drops as War Nears 50-Day Mark and Trump Strikes Upbeat Tone

An oil refinery in Houston on March 13. Photo by Mark Felix /Photographer: Mark Felix/BloombeArticle content(Bloomberg) — Oil dropped as President Donald Trump struck an optimistic tone on prospects for a permanent ceasefire between the US and Iran.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentBrent fell toward $98 a barrel, paring a weekly gain, while West Texas Intermediate was near $93. Trump claimed, without evidence, Tehran had agreed to terms it has long resisted, including opening the Strait of Hormuz.

The Islamic Republic has not publicly confirmed the concessions.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentSome Gulf Arab and European leaders said that a US-Iran peace deal would take about six months to be agreed and that the warring sides should extend their ceasefire to cover that timeframe, according to officials. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe crude market has been jolted by the conflict, which is now approaching the 50-day mark. The hostilities delivered an unprecedented supply shock, with Tehran halting most traffic through Hormuz, disrupting a fifth of global oil flows. More recently, the US also imposed its own naval blockade.Article content“The dominant theme now is not escalation, but stabilization,” said Priyanka Sachdeva, a senior market analyst at brokerage Phillip Nova Pte. “Oil markets are sending a clear message: fear drove the rally, diplomacy is driving the correction, and uncertainty will drive volatility ahead.”Article contentDuring the war, which began in February after the US and Israel attacked Iran, Trump has often sowed confusion among investors with contradictory statements and rapid shifts in position about the timeline for the conflict, threats of further action, and what’s been agreed. At times, he’s also shown a tendency to reverse himself when markets appear to be rejecting his policies.Article contentArticle contentOn Thursday, the US president said he didn’t expect he would have to extend a two-week ceasefire to reach a deal, predicting a resolution “fairly soon,” but if he needed to, he would. He also said that he might travel to Pakistan — which hosted a first round of talks — if a deal with Iran was clinched. Article contentIn remarks later at an event in Nevada, Trump sought to assuage voters’ fears about the cost of living as energy costs rise because of the conflict. He said the war in Iran was “going along swimmingly,” and should end soon.Article contentAfter a run of exceptionally volatile trading, price movements have cooled, with Brent trading in a band of about $10 a barrel this week compared with a record-setting $38 in mid-March. A gauge of the benchmark’s second-month contract volatility was near the lowest since early last month.Article contentIsrael and Lebanon also agreed to a 10-day ceasefire, a move that may ease regional tensions . Israel has been battling Hezbollah, a key ally of Tehran. Iran has linked a ceasefire in Lebanon with conditions for a pause in the fighting with Washington. Trump said that he hopes Hezbollah “acts nicely.”Trending Canadian quantum company Xanadu soars to $16 billion valuation after Nvidia release Innovation Posthaste: What Mark Carney's gas tax cut could mean for the Bank of Canada News A rise in mortgage rates may ‘pull the rug' out from under the spring housing market, says CREA Mortgages Canada presses for wider trade agreement in talks with U.S.

Economy The Great Correction: Not even Wayne Gretzky's hometown could escape the crash of the 'exurbs' Real Estate Article contentControl over Hormuz, which links the Persian Gulf to global markets, remains contentious, with the dual blockade keeping traffic at a near-standstill. Iran plans to charge ships for transit even after the war is over.Article content“The market is balancing improving headlines with the reality that every delay in normalization means further supply loss and tighter near-term fundamentals,” Rebecca Babin, a senior energy trader at CIBC Private Wealth Group. “While there’s been some positive geopolitical progress, it hasn’t translated into real movement on flows, which remain clearly constrained.”Article contentGiven the damage to infrastructure, International Energy Agency Executive Director Fatih Birol warned that it could take up to two years to recover a significant share of oil and gas production that has been disrupted. Any recovery would be gradual, Birol said on Bloomberg TV’s Wall Street Week.Article contentShare this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Canadian quantum company Xanadu soars to $16 billion valuation after Nvidia release Innovation Posthaste: What Mark Carney's gas tax cut could mean for the Bank of Canada News A rise in mortgage rates may ‘pull the rug' out from under the spring housing market, says CREA Mortgages Canada presses for wider trade agreement in talks with U.S.

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