Crude oil futures traded lower on Friday morning after US President Donald Trump expressed hopes of a possible agreement to end the war with Iran.
At 10 am on Friday, June Brent oil futures were at $98.20, down by 1.20 per cent, and May crude oil futures on WTI (West Texas Intermediate) were at $93.54, down by 1.21 per cent. April crude oil futures were trading at ₹8676 on Multi Commodity Exchange (MCX) during the initial hour of trading on Friday against the previous close of ₹8856, down by 2.03 per cent, and May futures were trading at ₹8382 against the previous close of ₹8576, down by 2.26 per cent.
Speaking to reporters in Washington on Thursday, Trump said Iran has offered not to possess nuclear weapons for more than 20 years. “We’re going to see what happens. But I think we’re very close to making a deal with Iran,” he said.
Trump also announced a 10-day ceasefire between Israel and Lebanon. In a series of posts on the social media platform Truth Social, he said: “I just had excellent conversations with the Highly Respected President Joseph Aoun, of Lebanon, and Prime Minister Bibi Netanyahu, of Israel. These two Leaders have agreed that in order to achieve PEACE between their Countries, they will formally begin a 10 Day CEASEFIRE at 5 P.M. EST. On Tuesday, the two Countries met for the first time in 34 years here in Washington, D.C., with our Great Secretary of State, Marco Rubio. I have directed Vice President JD Vance and Secretary of State Rubio, together with the Chairman of the Joint Chiefs of Staff, Dan Razin’ Caine, to work with Israel and Lebanon to achieve a Lasting PEACE.”
In another post, he said he would be inviting Netanyahu and Joseph Aoun to the White House for the first meaningful talks between Israel and Lebanon. “Both sides want to see PEACE, and I believe that will happen, quickly!” he said.
Trump hoped that Hezbollah acts nicely and well during this important period of time.
It is to be noted that Iran had asked Lebanon’s inclusion in ceasefire deal earlier.
Meanwhile, Fatih Birol, Executive Director of International Energy Agency (IEA), told the Associated Press (AP) that the economic pain of the current scenario in West Asia will be felt unevenly. “The countries who will suffer the most will not be those whose voice are heard a lot. It will be mainly the developing countries. Poorer countries in Asia, in Africa and in Latin America,” he said.
Referring to his interactions with many government leaders across the world, he said many countries are going to face huge challenges, if the Strait of Hormuz is not open until the end of May. The challenges will go from the high inflation numbers to coming close to slow growth or even to recession in some cases.
Stating that Europe may be having six weeks or so of jet fuel left, Birol said: “If we are not able to open the Strait of Hormuz … I can tell you soon we will hear the news that some of the flights from city A to city B might be cancelled as a result of lack of jet fuel.”
April natural gas futures were trading at ₹247.90 on MCX during the initial hour of trading on Friday against the previous close of ₹246.60, up by 0.53 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), May guargum contracts were trading at ₹11000 in the initial hour of trading on Friday against the previous close of ₹10912, up by 0.81 per cent.
May dhaniya futures were trading at ₹12880 on NCDEX in the initial hour of trading on Friday against the previous close of ₹12808, up by 0.56 per cent.