economy
Oil Prices Fall as Iran Signals Safe Passage for ‘Non-Hostile’ Ships Through Strait of Hormuz
Oil prices fell after Donald Trump said that Washington and Tehran are "in negotiations right now" and indicated Iran is keen to reach a peace agreement.
TL;DR
- Oil prices dropped as President Trump suggested direct negotiations with Iran.
- Trump cited ongoing talks as a reason to hold back from strikes on Iranian energy infrastructure.
- Iran denied direct talks with the U.S. but indicated 'non-hostile vessels' could transit the Strait of Hormuz with coordination.
- The Middle East crisis has significantly disrupted oil exports through the Strait of Hormuz, impacting global supply.
- Goldman Sachs noted the disruption as the largest shock in decades, with markets trading on geopolitical risk premiums.
- The bank's base case anticipates a normalization of flows through the Strait of Hormuz in April.