Oil prices slumped on Wednesday amid reports that the United States would be “out of Iran pretty quickly” and could return for “spot hits” if needed.
President Donald Trump told Reuters on Wednesday about the planned withdrawal of troops from Iran to end a war that started on February 28.
According to Reuters, Trump and his top officials have offered a variety of timelines for ending the war. He said on Tuesday that the US could end its military campaign against Iran within two to three weeks. In the Reuters interview, he declined to provide a precise timeline.
“I can’t tell you exactly … we’re going to be out pretty quickly,” he said, adding that once a US exit is achieved, “we’ll come back to do spot hits” on Iranian targets as needed.
Following the report, Brent crude fell from about $115 on Tuesday to $101 on Wednesday evening. WTI traded at $99.32 at the same time. According to oilprice.com, oil prices eased in Wednesday’s session on hopes of a quick de-escalation of the conflict.
Brent crude for May delivery was down 1.9 per cent.
However, oil prices remained more than 40 per cent above late February levels when the war broke out.
It remains uncertain whether the region will return to its pre-crisis state any time soon, as tensions are still very high. Iran’s Islamic Revolutionary Guard Corps (IRGC) has issued a direct threat to target 18 American technology and industrial companies in the Middle East, including Microsoft, Google, Intel, Tesla, IBM, Apple, and Boeing.
The IRGC has labelled these firms as “legitimate targets,” alleging they are “spy companies” involved in designing and tracking targets for US and Israeli military operations.
Meanwhile, as the war continues to disrupt traffic through the Strait of Hormuz, Brazilian state-run oil firm Petrobras hiked jet fuel prices by about 55 per cent on Wednesday, according to data on the company’s website.
Petrobras, the largest oil producer in Brazil and responsible for most refining activity, adjusts jet fuel prices at the beginning of each month based on factors such as international oil prices and foreign exchange rates.
In Nigeria, the Dangote Refinery is shipping aviation fuel and diesel to other countries due to escalating tensions in the Middle East. The refinery assured Nigerians that its fuel export would not affect the domestic supply of petroleum products.
Our correspondent reports that petrol prices have since come down to an average of N1,250 per litre at many filling stations, particularly in the South-West, reflecting Dangote’s last gantry price reduction.
