Oil futures swung sharply after President Donald Trump said he held discussions about ending the conflict with Iran, though Tehran denied any such dialogue.\u00a0<\/p>\n\n\n\n
Brent crude fell as much as 14% shortly after Trump announced on his Truth Social network, sliding to $96 a barrel. <\/p>\n\n\n\n
Prices then pared a significant portion of the drop after Iran denied there were any talks. Europe\u2019s natural gas benchmark also plunged before paring most of its losses.\u00a0<\/p>\n\n\n\n
Energy markets have been pitched into turmoil since the conflict began at the end of February, with the vital Strait of Hormuz waterway all but blocked. <\/p>\n\n\n\n
The de facto closure of the waterway has disrupted about a fifth of the world\u2019s oil flows and a similar portion of its liquefied natural gas supply.\u00a0<\/p>\n\n\n\n
The International Energy Agency has described the current crisis as the largest oil supply disruption in history. <\/p>\n\n\n\n
US officials have been quick to try to talk down energy prices in recent weeks, and Trump\u2019s post on Monday was the latest in a run of comments that appear designed to tame prices. <\/p>\n\n\n\n
As well as verbal interventions, the US has also announced the release of emergency oil reserves and waived some sanctions on Iranian and Russian crude in a bid to offset some of the barrels lost due to the Hormuz blockage.\u00a0<\/p>\n\n\n\n
Monday\u2019s swings are also the latest in a series of huge price moves that exhausted oil traders are having to contend with. <\/p>\n\n\n\n
Four of the six largest swings ever in Brent futures have come since the war began at the end of February.<\/p>\n\n\n\n
\u201cThe market is in utter chaos,\u201d analysts at brokerage PVM Oil Associates Ltd. wrote in a note. <\/p>\n\n\n\n
\u201cIt is a clear sign of conceding to market forces, rallying oil prices and falling equities,\u201d they said, referring to Trump\u2019s social media post.<\/p>\n\n\n\n
Trump said on his Truth Social network that the US had held productive conversations regarding a total resolution of hostilities in the Middle East. <\/p>\n\n\n\n
He added that discussions would continue throughout the week, but didn\u2019t specify the nature of the talks or who would be involved.\u00a0<\/p>\n\n\n\n
The state-run Mizan news agency cited an Iranian foreign ministry statement as saying there are no talks between Tehran and Washington. Other media services in the country also said there were no talks. <\/p>\n\n\n\n
On Friday, Trump said that he was considering \u201cwinding down\u201d US military efforts, before giving Iran 48 hours to reopen Hormuz and threatening attacks on the country\u2019s power plants. <\/p>\n\n\n\n
\u201cTrump is plainly trying to talk down the price,\u201d said Bjarne Schieldrop, chief commodities analyst at SEB AB. \u201cReopening Hormuz is up to Iran and not down to Trump\u2019s policies.\u201d<\/p>\n\n\n\n
De-escalation could lead to a return of some of those supplies, though much would depend on how soon shipowners will be willing to resume sailing through Hormuz. <\/p>\n\n\n\n
The flow of most goods through the waterway has been all but halted, with shipowners unwilling to risk the lives of their seafarers in the region.\u00a0<\/p>\n\n\n\n
Any halt to hostilities would likely ease the inflationary impact of the conflict, though energy supplies could take some time to resume.\u00a0<\/p>\n\n\n\n
Wall Street banks have been steadily upgrading their oil price forecasts in recent weeks. <\/p>\n\n\n\n
Goldman Sachs Group Inc. said before Trump\u2019s post on Monday that it now expects crude to average $85 a barrel this year, up from $77 previously.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
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