Kolkata: Crude prices have responded positively to a report in the Wall Street Journal that Donald Trump is willing to end the attacks against Iran even if it meant that the crucial Strait of Hormuz remains mostly closed. Brent crude futures for May declined 1.08% of $1.22 to touch $111.56 per barrel, while West Texas Intermediate futures for May dipped 0.95%, or 98 cents, to reach $101.90 a barrel.
Shift in stance
Over the past few weeks, US president Donald has been changing his stance on the war in the Gulf frequently. However, the latest report in the Wall Street Journal has pointed to something he has never said earlier. It quoted officials in the US administration to report that the president will be content with hobbling Iran’s navy and its missile stocks. It would use diplomatic means to resume the free movement of ships through the Strait of Hormuz. On Monday White House the press secretary said the President and the Pentagon chief were unanimous on a four to six-week timeline for the military operation.
Significance of Strait of Hormuz
The Strait of Hormuz carries immense significance for the world energy situation. Apart from one fifth of global oil supply a large share of natural gas tankers also passes through this channel. In fact, natural gas supplies have been hit harder since the war than that of crude oil supplies. Iran has closed the Strait Hormuz to vessels that belong to countries not friendly to it. And despite repeated pleas from almost all nations, it has refused to lift the closure on the channel. On Tuesday, Kuwait Petroleum Corp Al Salmi one of its crude oil tankers which can carry up to 2 million barrels, was hit at a port in Dubai.