Crude Oil prices declined in Asian trading on Tuesday, April 14, with Brent crude slipping toward $97 per barrel and West Texas Intermediate nearing $96, as signs emerged that Washington and Tehran may resume peace talks, even though the US began a blockade of the Strait of Hormuz.
According to Bloomberg, discussions to hold further negotiations are underway, aiming at a longer-term ceasefire before a two-week pause in hostilities announced on April 7 expires.
US President Donald Trump said Iran had reached out for talks. “We’ve been called this morning by the right people, the appropriate people, and they want to work a deal,” he told reporters.
Also read: What prompted S&P 500 to rebound and recover all its losses for 2026 on Monday
Meanwhile, Iranian President Masoud Pezeshkian said the country is open to continuing discussions within the framework of international law.
The conflict involving the US, Israel and Iran — now in its seventh week — has disrupted the oil market and the global energy markets, damaging infrastructure and restricting flows through the Strait of Hormuz. The US blockade of vessels linked to Iran’s Gulf ports has further tightened supply concerns.
Experts believe that the possibility of renewed negotiations may limit further gains in crude, though supply pressures persist.
Also read: Asian stocks rise on Trump’s Iran peace talk signals; oil eases despite Hormuz blockade
Robert Rennie of Westpac Banking Corp. told Bloomberg, “Even if diplomatic signals keep headline benchmarks anchored around or below $100, the underlying supply squeeze is intensifying.”
Fuel prices have surged globally, with the US gasoline and diesel costs climbing to their highest levels since 2022 earlier this month, while jet fuel and diesel prices in Europe have risen to near-record levels above $200 a barrel.
Brent for June settlement fell 2.1% to $97.30 a barrel on Tuesday morning, while WTI for May delivery declined 2.5% to $96.59, according to Bloomberg.
US Vice President JD Vance said the blockade has increased US leverage in negotiations, acknowledging the impact of higher fuel prices on consumers. “We can start to wind this thing down,” he told Fox News.
Shipping activity through the Strait of Hormuz declined again on Monday, April 13, after a brief increase a day earlier, with only a limited number of tankers completing transit.
The blockade is expected to increase economic pressure on Iran, but could also raise global energy costs, with a broader impact on oil pricing, Dr Deep Pal, Director – Geopolitics and Policy at Koan Advisory Group, told CNBC-TV18.
The move contradicts earlier efforts to keep Iranian oil flowing to stabilise prices, he said, adding, “The moment you do this, you are pushing prices to go up again.”
Markets are now awaiting fresh supply-demand signals from the International Energy Agency, which is set to release its monthly report later Tuesday. Executive Director Fatih Birol said oil prices have yet to reflect the scale of the supply disruption fully.
Meanwhile, OPEC data showed crude output dropped sharply last month as the conflict curbed exports from key producers.
