MUSCAT: The official price of Oman crude oil for May delivery fell to $139.64 on Tuesday, marking a steep decline of $20.56 from the previous day’s level of $160.20.

The drop follows heightened volatility in global oil markets, driven by shifting geopolitical signals and uncertainty surrounding supply routes in the Gulf.

Despite the daily decline, the average monthly price of Omani crude for March delivery stood at $62.17 per barrel, up marginally by 8 cents compared to February.

International benchmarks, however, edged higher on Tuesday amid persistent supply concerns. Brent crude rose by $1.25, or 1.3 per cent, to $101.19 per barrel, while US West Texas Intermediate (WTI) gained $2.15, or 2.4 per cent, to reach $90.28.

Market sentiment remains fragile as tensions linked to the Iran conflict continue to disrupt energy flows. Iran has denied engaging in negotiations with the United States to end the conflict, contradicting earlier remarks by US President Donald Trump suggesting that progress had been made towards a possible agreement.

Oil prices had plunged by more than 10 per cent on Monday after Washington announced a temporary delay in planned strikes on Iranian energy infrastructure, citing ongoing discussions with unnamed Iranian officials.

The conflict has significantly impacted shipments through the Strait of Hormuz — a critical artery for global energy trade — with flows of oil and liquefied natural gas severely constrained. The International Energy Agency has described the situation as the largest oil supply disruption on record.

Analysts say markets are struggling to stabilise amid conflicting developments.

“Prices are attempting to find direction, but uncertainty remains high given the unresolved risks surrounding Hormuz,” analysts noted, pointing to continued volatility driven by geopolitical headlines.

Further escalation has also targeted energy infrastructure within Iran. Reports indicate that facilities in Isfahan and Khorramshahr were struck, including a gas pipeline supplying a power station.

Looking ahead, analysts warn that prolonged disruption could push prices significantly higher. Some forecasts suggest Brent crude could climb to $150 per barrel if the Strait of Hormuz remains effectively closed through April, potentially surpassing the previous record high of $147 set in 2008. — Agencies

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