Brent crude slipped to about $104.10 per barrel on Wednesday morning, extending the previous session’s losses as hopes increased for a de-escalation in the Middle East. The Wall Street Journal reported that President Donald Trump may end US operations before the Strait of Hormuz is reopened, in an effort to avoid prolonging the conflict. Iran’s president also signaled a willingness to halt hostilities if adequate guarantees are provided.
However, skepticism persisted, given Iran’s historically inflexible demands and the continued buildup of US forces, both of which keep the risk of renewed escalation elevated. Even after the latest pullback, Brent crude soared more than 60% in March—its strongest monthly advance since records began in 1988—driven by supply disruptions and infrastructure damage across several key OPEC producers.
On the data front, US crude inventories jumped by 10.263 million barrels in the week ended March 27, the largest weekly build in several weeks, following a 2.3 million barrel increase previously and defying expectations for a 1.3 million barrel draw.
