Oil Prices Experience Sharp Fluctuations Amid US-Iran Tensions

JAKARTA – Global oil prices are experiencing high volatility amid uncertainty over the continuation of the second round of peace negotiations between the United States (US) and Iran. This fluctuation follows a sharp surge in oil prices due to rising geopolitical tensions in the Middle East, particularly related to disruptions in the Strait of Hormuz. Oil prices fell during trading on Tuesday (21/4/2026) Asian time. Citing CNBC, the US West Texas Intermediate (WTI) crude futures contract for May 2026 delivery dropped 1.51% to $88.26 per barrel US. This correction came after both benchmarks closed with gains of around 7% and 5% the previous day. The price drop occurred amid reports that US Vice President JD Vance will lead the American delegation to Pakistan for talks related to Iran. However, signals from Iran indicate that the country is not yet ready to continue negotiations. “We do not accept negotiations under the shadow of threats, and in the last two weeks, we have prepared to reveal new cards on the battlefield,” he stated. On the other hand, US President Donald Trump has once again issued threats of military action against Iran. He warned that “many bombs will start exploding” if no agreement is reached before the fragile ceasefire ends on Tuesday night. Tensions have escalated after US forces seized an Iranian vessel on Sunday (19/4/2026), in line with the continued policy of blockading Iranian ports. This shift in rhetoric has directly impacted the volatility of the global oil market. According to market players, the sharp price movements in recent weeks have largely been driven by the dynamics of political communication from Washington.