Global Oil Prices Plunge Sharply as Market Bets on US-Iran Negotiations
HOUSTON, KOMPAS.com - Global oil prices plunged sharply at the close of trading on Tuesday (14 April 2026) local time, or Wednesday (15 April 2026) morning Western Indonesia Time, as market hopes rose for the continuation of negotiations between the United States (US) and Iran.
The price drop occurred amid expectations that diplomatic talks could end the conflict that has closed the Strait of Hormuz, one of the world’s main shipping routes for crude oil and natural gas.
Citing Reuters, Brent crude closed down $4.57, or 4.6%, at $94.79 per barrel.
Meanwhile, West Texas Intermediate (WTI) crude fell $7.80, or 7.87%, to $91.20 per barrel.
Analyst John Kilduff of Again Capital said the market is beginning to see the possibility of a more positive outcome from the ongoing conflict.
“There is hope in the market for a better outcome. All of this means the market had previously priced in many of the disruptions we’ve seen,” he said.
He added that Brent prices tend to be more sensitive to global supply disruptions compared to WTI, which more reflects US domestic and regional American distribution.
Nevertheless, analyst Tamas Varga of PVM Oil Associates believes the current price drop ignores the fact of physically disrupted oil supplies.
“Talks about restarting US-Iran negotiations are indeed pressuring prices, but this decline ignores the loss of physical oil supplies that are not moving,” Varga said.
The International Energy Agency (IEA) in its monthly report stated that attacks on energy infrastructure in the Middle East, as well as Iran’s effective closure of the Strait of Hormuz, have caused the largest supply disruptions in history, with losses reaching 10.1 million barrels of oil per day in March.
“Recovery of flows through the Strait of Hormuz remains the most important variable in easing pressure on energy supplies, prices, and the global economy,” the IEA wrote.
The US military previously stated that the blockade in the Strait of Hormuz would be extended to the Gulf of Oman and the Arabian Sea.
Ship tracking data shows two vessels turned back when the blockade began.
However, three tankers linked to Iran still entered the Gulf area and were allowed to pass because their shipment destinations were not to Iranian ports.