Oil seesaws as traders weigh Trump’s Iran stance, Hormuz disruption

Group 1 - Oil prices experienced volatility as market participants assessed the potential for US President Donald Trump to end military actions against Iran, juxtaposed with the ongoing impact of the partial closure of the Strait of Hormuz [1][2] - Brent crude futures for May rose by $0.65 to $113.43 per barrel, while the June contract was at $107.31, indicating fluctuations between a 2% gain and a 1% loss during the session [1] - US West Texas Intermediate (WTI) futures for May increased by $0.02, or 0.02%, to $102.90 per barrel, marking the highest level since March 9 [2] Group 2 - The effective blockage of the Strait of Hormuz by Iran has led to a significant increase in oil prices, with Brent futures rising by 59% in March, the highest monthly increase on record, and WTI rising by 58%, the largest surge since May 2020 [3] - The Strait of Hormuz is crucial for global oil distribution, accounting for approximately one-fifth of it, and is also significant for liquefied natural gas (LNG) transport [3] - In response to regional tensions, Saudi Arabia has rerouted its crude exports through the Red Sea port of Yanbu, with shipments reaching 4.658 million barrels per day last week, a substantial increase from the January and February averages of 770,000 barrels per day [5] Group 3 - Kuwait Petroleum reported that its crude oil tanker Al Salmi was allegedly attacked by Iran in a Dubai port, raising concerns about regional stability [4] - Yemen's Houthi forces, aligned with Iran, targeted Israel with missiles, increasing fears of disruptions to the Bab el-Mandeb strait, a vital shipping route between Asia and Europe [4]