United States ready for the end of the war in Iran?
Oil prices are falling halfway through the week due to reports of a 15-point plan that Iran was supposed to receive from Pakistan.
According to The New York Times, the document prepared by the United States government reflects Donald Trump's desire to end the conflict that has led to serious economic consequences.
The information pushed other reports to the background, such as the sending of about 2000 American soldiers from the 82nd Airborne Division to the region and the lack of breakthrough in opening the Strait of Hormuz.
President Trump's rhetoric in recent days has undergone significant changes due to posts by the Republican on Truth Social.
Last Saturday, Trump demanded that Iran reopen the Strait of Hormuz within 48 hours under threat of destroying “various power plants, starting with the largest.”
On Monday, he announced the suspension of military actions between the United States and Iran for a period of five days.
The market currently values the effects of the almost four-week-long war in the Middle East.
Christine Lagarde, President of the European Central Bank, said that policymakers will take decisive and swift action if the sharp rise in energy costs threatens to intensify inflation.
Lagarde says the current situation differs from that caused by Russia’s invasion of Ukraine in 2022, but still “there are reasons to remain vigilant.”
“We will not take action until we have sufficient information about the scale and durability of this shock and its spread,” she said at the ECB Watchers conference in Frankfurt.
“We will not let hesitation paralyze us: our commitment to achieving inflation at 2% in the medium term is unconditional,” she added.
Analysts from Goldman Sachs Research remind that flow through the Strait of Hormuz remains “very limited.”
“In the last few days, only an average of 2 tankers per day passed through it, and US officials confirm that Iranian mines are still in the strait,” the statement reads.
“Although we currently believe that oil flow through the Strait of Hormuz will remain disrupted until April 10, the market reaction likely reflects a slight reduction in perceived risks associated with long-term disruptions and damage to energy assets,” added the statement.
Read also: Fuel prices plunged after Trump’s words. Attacks on Iran were halted. “I instructed the Department of Defense”
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Fuel prices fall in response to peace plan reports
The futures price of Brent crude on Wednesday, March 25 fell by 5,5% to 98,7 USD per barrel.
Chart. Brent futures price
Source: Trading Economics.
The WTI futures price reached 87,5 USD per barrel after falling by 5,3%.
Chart. WTI futures price (West Texas Intermediate)
Source: Trading Economics.
European gas futures contracts are falling by 7% to 50,1 EUR per MWh.
Chart. European gas futures contracts
Source: Trading Economics.
Read also: Gas price rose by almost 100%. Soon three-digit amounts and a repeat from 2022? Bank explains
See also: Fuel prices in Poland will rise, shortages will appear at stations? Expert: “It will not be a one-time sudden move that affects drivers”
