Reversal of oil prices on world stock exchanges. Despite the situation in the Strait of Hormuz
Investors are closely following news from the Middle East and Donald Trump's diplomatic offensive in Asia, trying to assess the stability of energy supplies in the face of the conflict that has been ongoing since February.
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Correction of oil prices on the stock exchanges in New York and London
On Wednesday, crude oil prices turned red. A barrel of West Texas Intermediate (WTI) crude oil for June deliveries dropped on the NYMEX exchange by 1.36%, reaching $100.79.
A similar trend was noted in London – Brent crude oil for July deliveries was valued at USD 106.35. per barrel, which means a decrease of 1.32%.
These declines occur despite the lack of a breakthrough in relations between Washington and Tehran. The Strait of Hormuz remains a key flashpoint. As brokers emphasize, the strategic route is “virtually blocked” – which paralyzes the transport of oil, natural gas and other fuels from the Persian Gulf region to recipients around the world.
Donald Trump: Iran is not a topic for Xi
The US president, going to Beijing for a summit with Xi Jinping, tried to downplay the impact of the conflict on the agenda of talks with the Chinese leader. Contrary to earlier suggestions from the White House, Trump declared that the Iran issue would not be a priority at the meeting.
“I wouldn't say Iran is one of them (topics to discuss), to be honest, because we have Iran under control (…) we don't need help with Iran“- said the president before leaving for China.
Trump emphasized his “great relations” with the leader of the People's Republic of China and announced his return to the US later this year. However, experts note that The president's self-confidence may be tested by data from the US economy.
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The shadow of inflation over the US elections
Despite assurances of “full control,” the Trump administration is feeling growing internal pressure. The conflict in the Middle East has reignited concerns about price stability in the United States. CPI inflation data for April published on Tuesday showed an increase of 3.8%. year on year – above analysts' expectations.
The situation is particularly difficult for the White House due to fuel prices. “Gasoline prices overseas have already reached the highest level since 2022.” — which is becoming fuel for the opposition before the key congressional elections scheduled for November.
Japan seeks salvation in Mexico
The blockage of supplies from the Persian Gulf hit Asian countries the hardest. The situation in Japan is particularly difficult, with as many as 90 percent it covers its oil needs with imports from Saudi Arabia, the UAE, Kuwait and Qatar.
In search of alternatives, Japanese refineries for the first time in three years turned to Mexican Isthmus crude oil extracted in the Gulf of Mexico. This is a medium grade of raw material that is intended to help maintain fuel production in the Land of the Rising Sun at a time when traditional supply routes remain cut off.
