Global oil prices went down a little in early Asian trading. This small drop did not make markets feel much better. Markets are still worried about the Strait of Hormuz.
Oil prices that everyone uses as a guide went down. Brent oil is near $95 per barrel. US West Texas Intermediate oil is trading in the $90s. Even though prices went down a bit, experts say markets are still very sensitive. Prices can go up or down sharply if something new happens.
The recent easing of oil prices happened because people think there might be talks between the United States and Iran. Earlier talks seemed to be going in a direction. There are still big risks. The Strait of Hormuz is not working normally.
The Strait of Hormuz is one of the important waterways for oil. It has traffic because tensions between the United States and Iran are high. Ships are being careful. Some ships are staying close to waters because of security concerns.
This month, oil prices went up sharply when the Strait was almost closed. This stopped millions of barrels of oil from moving. Even though prices have come down from their peak, the supply situation is still tight.
Washington is trying things to calm the market. It has a presence in the region. It is talking to allies. It might release some oil from its reserves or ease some sanctions.
These efforts have helped calm the market for now. They have not made the risk of more disruption go away. Experts warn that the market is one shock away from another big price jump. This could happen if tensions go up or if it gets harder to move oil.
The recent price changes suggest that prices might go up again soon. There are still no physical oil flows. This limits how much oil can be supplied. It keeps a floor under prices.
For now, markets seem calm. The situation is still fragile. As long as there is uncertainty about the Strait of Hormuz, oil prices will likely be volatile. The global energy system is still under strain.
