Traders’ reaction to diplomatic developments
Reports said Brent crude settled at around $108 per barrel, while US West Texas Intermediate (WTI) dropped to about $102 per barrel, reflecting a pullback from recent highs as traders reacted to the diplomatic developments.
The decline follows a sharp surge in oil prices in recent weeks, with Brent crude briefly climbing above $126 per barrel — the highest level in four years — amid fears of supply shortages linked to the conflict and restricted flows through the Strait of Hormuz, a key global shipping route.
Despite the latest drop, analysts said prices remain elevated due to ongoing disruptions, including what has been described as a “dual blockade” — Iran’s continued restriction of the strait and US efforts to limit Iranian oil exports.
Highly sensitive
Market sentiment has been highly sensitive to developments in the Middle East, with even tentative diplomatic signals triggering price swings as traders reassess supply risks.
Domestically, the continued disruption of the Strait of Hormuz — which accounts for about 20 percent of global oil exports — continues to be felt through elevated fuel prices and a weakened currency.
Despite government-mandated price cuts, pump prices remain about 60 percent higher than levels prior to the conflict’s escalation in early March.
Industry sources also project another round of increases next week, with diesel expected to rise by as much as P2 per liter and gasoline by up to P3 per liter.
