FINWIRES · TerminalLIVE
FINWIRES

EMEA Oil Update: Prices Below $100 as Middle East Conflict Lingers

-- Crude oil futures attempted to stabilize below $100 threshold on Friday as significant physical supply constraints counteracted optimism surrounding the two-weeks ceasefire.

The front-month Murban crude contract dropped 1.7% at $97.97 per barrel. Brent futures contract eased 0.4% at $95.91/bbl.

"Crude prices try to [stabilize] below [$]100 following the sharpest weekly drop since last June yet remain underpinned by mixed signals surrounding the proposed peace plan, a roughly 600,000 b/d cut in Saudi production capacity, and the effective closure of the Strait of Hormuz since late February," Saxo Bank analysts said.

"Meanwhile, spot Brent transactions continue to clear at notable premiums to futures, underscoring mounting supply stress as refiners scramble to replace disrupted Middle East flows," they added.

An April 9-dated news article by the Saudi Press Agency citing the Energy Ministry referred to an attack "recently" on a pumping station on the East-West pipeline, which it said caused a loss of about 700,000 barrels in throughput.

It did not make mention of the origin of the attack but a source told Reuters on Wednesday that it came from Iran, damaging Saudi Arabia's main alternative route to export markets since the closure of the Strait of Hormuz.

Market analysts warned that the damage to infrastructure may cause long-term disruptions. Oil and gas output has already been scaled back, and refinery operations remain curtailed, meaning it could take weeks or months to fully reverse the supply shock.

Analysts from ING noted that while there was initial optimism regarding a resolution to the six-week conflict, geopolitical risk premiums remain high following new threats from Washington toward Tehran.

US President Donald Trump warned Iran on Thursday amid reports that Tehran has started charging transit fees on tankers navigating the Strait of Hormuz, as shipping through the key waterway remains largely restricted despite the ceasefire deal.

"There are reports that Iran is charging fees to tankers going through the Hormuz Strait," Trump said in a social media post on Truth Social, "They better not be and, if they are, they better stop now!"

According to TRM Labs Thursday note, Iran's new toll framework requires payments of up to $2 million per vessel payable in cryptocurrency or Chinese yuan generating an estimated $20 million in daily revenue for Tehran.

Further tightening the squeeze, the Tass news agency reported citing a senior Iranian source that Iran will limit transit to a maximum of 15 ships per day.

The source reportedly said that under the current ceasefire, "fewer than 15 ships per day" will be permitted to sail via the Strait of Hormuz, according to the report.

All eyes are now on the high-stakes talks between a US delegation and Iranian officials scheduled for this weekend.

Related Articles

Sectors

Sector Update: Financial Stocks Retreat Late Afternoon

Financial stocks were declining in late Tuesday afternoon trading, with the NYSE Financial Index decreasing 0.6% and the State Street Financial Select Sector SPDR ETF (XLF) off by 0.3%.The Philadelphia Housing Index was adding 0.8%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) fell 1.6%.Bitcoin (BTC-USD) was decreasing 0.2% to $75,717, and the yield for 10-year US Treasuries rose 4.2 basis points to 4.29%.In economic news, US retail sales rose 1.7% in March, above the 1.4% increase expected in a Bloomberg-compiled survey and following the previous month's revised 0.7% gain. Removing both motor vehicles and a 15.5% surge in gasoline station sales, retail sales were up 0.6% in March, the same as in February.US pending home sales increased more than expected in March despite higher mortgage rates, data from the National Association of Realtors showed.In corporate news, JPMorgan Chase (JPM) is working to secure approval from securities regulators in China to launch actively managed exchange-traded funds in the country for the first time, Bloomberg reported. JPMorgan shares were down 1.3%.Coinbase (COIN) and Gemini Titan have been sued by New York Attorney General Letitia James for allegedly violating the state laws against illegal gambling with their prediction markets, Reuters reported, citing complaints filed in a state court in Manhattan. Coinbase shares fell past 7%.Washington Trust Bancorp (WASH) reported late Monday a year-over-year decline in Q1 revenue that also trailed analysts' estimates. Its shares tumbled nearly 17%.Barclays (BCS) is facing scrutiny from UK regulators over its use of significant risk transfer, or SRT, transactions, Bloomberg reported. The review, known as a Section 166 probe, has been requested by the Prudential Regulation Authority, the supervisory arm of the Bank of England, the report said. Barclays shares fell 2.9%.

$BCS$COIN$JPM$WASH
Sectors

Sector Update: Health Care Stocks Softer Late Afternoon

Health care stocks declined late Tuesday afternoon, with the NYSE Health Care Index down 1% and the State Street Health Care Select Sector SPDR ETF (XLV) shedding 0.9%.The iShares Biotechnology ETF (IBB) decreased 1%.In corporate news, Passage Bio (PASG) faces a tougher path after US regulators told the company it will need to run a randomized study to support approval of its experimental treatment PBFT02, a move that adds time, cost, and uncertainty, Wedbush said Tuesday in a report. Wedbush downgraded Passage Bio's stock to neutral from outperform and cut its price target to $8 from $32. Passage Bio shares dropped 2.9%.Merck (MRK) and Japanese health care company Eisai said Tuesday that phase 3 trials of two drug combinations failed to meet primary endpoints of progression-free survival and overall survival as a first-line treatment of patients with advanced clear cell renal cell carcinoma compared with Keytruda plus Lenvima. Merck shares fell 3.7%.UnitedHealth Group (UNH) raised its full-year earnings outlook on Tuesday as the health insurance giant recorded an unexpected annual increase in its first-quarter results. Its shares jumped past 7%.Quest Diagnostics (DGX) shares popped more than 4% after it reported higher Q1 adjusted earnings and net revenue and raised its 2026 outlook.

$DGX$MRK$PASG$UNH
Sectors

Sector Update: Tech Stocks Higher Late Afternoon

Tech stocks advanced late Tuesday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) increasing 0.7% and the State Street SPDR S&P Semiconductor ETF (XSD) gaining 2.6%.The Philadelphia Semiconductor index rose 1.1%.In corporate news, Amazon.com-backed (AMZN) Anthropic could reach an agreement to deploy its AI models for use by the US Department of Defense, CNBC reported, citing an interview with President Donald Trump. Amazon shares rose 0.6%.Apple (AAPL) said that Tim Cook will step down as chief executive of the iPhone maker and become executive chairman, with hardware engineering veteran John Ternus set to succeed him as CEO. Apple shares were down 2.4%.Moody's (MCO) said Tuesday that it is deepening its partnership with Microsoft (MSFT) by embedding its credit intelligence into Microsoft 365 Copilot and other AI-driven enterprise tools, expanding its presence across financial workflows. Microsoft shares gained 1.5%.Intel (INTC) is expected to report a "slight beat" in its fiscal Q1 results amid robust server CPU demand, RBC Capital Markets said in a note. Intel shares rose 0.2%.

$AAPL$AMZN$INTC$MSFT