Oil market reacts to geopolitics: Trump's statements affected prices, but they remain high

World oil prices on May 4 showed a slight decrease after statements by US President Donald Trump about Washington's intentions to help ships blocked in the Strait of Hormuz. At the same time, the lack of a peace agreement between the US and Iran continues to keep quotes at a high level.

Reuters reports on the relevant market dynamics, emphasizing that geopolitical factors remain key drivers for oil prices. The situation in the Persian Gulf region, in particular shipping safety, directly affects global energy supplies.

According to the latest data, Brent crude oil futures fell by 6 cents, or 0.1%, to $108.11 per barrel. This followed a significant drop on Friday, when the price lost $2.23.

American West Texas Intermediate crude also fell in price. Its price was $101.50 per barrel, down 44 cents (0.4%) from the previous day. The previous day, this grade of oil lost even more — $3.13.

Experts note that despite the short-term decline, the overall price level remains elevated due to uncertainty in the region. Analysts emphasize that the market is closely monitoring the development of relations between the United States and Iran, as any changes can significantly affect the balance of supply and demand.

In particular, Phillip Nova analyst Priyanka Sachdeva emphasized that the lack of a clear and long-term solution to the restoration of normal shipping through the Strait of Hormuz will keep oil prices high. According to her, until the situation stabilizes, the market will remain under the influence of geopolitical risks.

As a result, even despite the local decline in prices, the oil market remains tense. Investors and traders continue to consider potential risks of supply disruptions, which continues to support energy prices above $100 per barrel.