Oil prices remained elevated during Asian trading on Wednesday as markets processed mixed signals surrounding the ongoing conflict with Iran. Brent crude futures for June climbed 0.5% to $104.47 per barrel, while West Texas Intermediate crude for May rose 0.8% to $102.21 per barrel, keeping both benchmarks near levels not seen in years.
The gains came after a volatile prior session, where Brent's May contract surged nearly 5% to settle at $118.31 a barrel, even as WTI closed slightly lower at $101.62. Adding to the bullish backdrop, Brent crude recorded a historic monthly gain of over 63% in March, fueled by deepening fears of prolonged disruptions to global oil supply.
Markets are closely watching diplomatic developments between Washington and Tehran. President Donald Trump signaled that the U.S. could exit the conflict within two to three weeks, noting that Iran need not strike a formal deal to bring the fighting to a close. However, a Wall Street Journal report indicated Trump may be open to halting military action even if the Strait of Hormuz remains largely blocked — a scenario that would do little to ease supply pressures.
Iran's President Masoud Pezeshkian expressed readiness to end the conflict but reiterated conditions that suggest any ceasefire remains uncertain. This has left crude oil traders balancing cautious optimism with the reality of continued market tightness.
At the heart of the supply crisis is the Strait of Hormuz, a narrow waterway responsible for roughly one-fifth of global oil flows. Tanker traffic through the strait has collapsed since hostilities escalated, severely curtailing exports from the region. American Petroleum Institute CEO Mike Sommers stressed that restoring passage through the strait is essential to stabilizing global energy markets, warning that prices will keep climbing without it.
