Published by Global Banking & Finance Review®
Posted on April 16, 2026
3 min readLast updated: April 16, 2026
Add as preferred source on GoogleOil prices dipped as renewed hopes for a U.S.–Iran deal—including possible restoration of safe shipping through the Strait of Hormuz—weighed more heavily than persistent supply disruption concerns.
By Yuka Obayashi
TOKYO, April 16 (Reuters) - Oil prices fell in early trade on Thursday as hopes for easing U.S.-Iran tensions, following reports that Iran could allow ships to pass through around the Strait of Hormuz, outweighed concerns over ongoing supply disruptions.
Brent crude futures dropped 44 cents, or 0.5%, to $94.49 a barrel at 0021 GMT. U.S. West Texas Intermediate crude futures was down 70 cents, or 0.8%, at $90.59 a barrel.
Both benchmarks settled little changed on Wednesday.
The White House expressed optimism on Wednesday about reaching a deal to end the war with Iran, while also warning of increasing economic pressure against Tehran if it remains defiant.
A source briefed by Tehran told Reuters that Iran could consider allowing ships to sail freely through the Omani side of the Strait of Hormuz if a deal was reached to prevent renewed conflict.
"While there are hopes for de-escalation, many investors remain sceptical, given that U.S.-Iran talks have repeatedly broken down even after appearing to make progress," said Toshitaka Tazawa, an analyst at Fujitomi Securities.
"Until a peace deal is reached and free navigation through the strait is restored, WTI prices are expected to continue fluctuating between $80 and $100," he added.
The U.S.-Israeli war with Iran has resulted in the largest-ever disruption of global oil and gas supplies due to Iran's interruption of traffic through the strait, which handles about 20% of the world's oil and liquefied natural gas flows.
U.S. and Iranian officials were weighing a return to Pakistan for further talks as early as the coming weekend, after negotiations ended on Sunday without a breakthrough. Mediator Pakistan's army chief arrived in Tehran on Wednesday to try to prevent a renewal of the conflict.
The U.S. has enacted a blockade of shipping leaving Iranian ports that its military said has completely halted trade going in and out of the country by sea.
U.S. Treasury Secretary Scott Bessent said on Wednesday that Washington will not be renewing the waivers that allowed the purchase of some Iranian and Russian oil without facing U.S. sanctions.
Meanwhile, the U.S. Energy Information Administration said on Wednesday that crude inventories fell by 913,000 barrels to 463.8 million barrels in the week ended April 10, compared with analysts' expectations in a Reuters poll for a 154,000-barrel rise.
(Reporting by Yuka Obayashi; Editing by Lincoln Feast.)
Oil prices declined as reports suggested easing US-Iran tensions, with hopes that Iran may allow ships to pass through the Strait of Hormuz, overshadowing ongoing supply disruptions.
The Strait of Hormuz is a key chokepoint, handling about 20% of global oil and liquefied natural gas flows, making it crucial for world energy trade.
The US and Israeli conflict with Iran has led to the largest-ever disruption in oil and gas supplies, with Iran blocking the strait and the US enforcing a shipping blockade on Iranian exports.
Analysts expect WTI prices to fluctuate between $80 and $100 until a peace deal is reached and free navigation through the Strait of Hormuz resumes.
US crude inventories fell by 913,000 barrels to 463.8 million in the week ending April 10, against expectations for a modest rise.
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