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Oil prices dropped on Tuesday while global markets showed mixed performance after a report said U.S. President Donald Trump was open to ending the Iran war even if the Strait of Hormuz remains closed.
Brent crude fell as much as 1.6% to $111 per barrel before recovering to $113, while U.S. crude declined 1.9% to $101 and later rebounded to $103.
Asian equities kept falling, with Japan’s Nikkei 225 down 1.3% to 51,217 points and posting a 13.2% drop in March, its biggest monthly decline since October 2008. South Korea’s Kospi dropped 4% at the close. Hong Kong’s Hang Seng and China’s Shanghai Composite recorded smaller losses of 0.3% and 0.4%, respectively.
In contrast, European and U.S. futures pointed higher, with Stoxx 50 futures rising 0.4% and major U.S. index futures gaining around 0.8%.
Precious metals advanced as investors sought alternatives. Gold rose about 1% to $4,555 per ounce, while silver gained 3% to $72.1. Platinum and palladium each increased around 1%, reaching $1,880 and $1,404 per ounce.
Cryptocurrencies posted modest gains, with Bitcoin edging up 0.1% to $67,370 and Ethereum rising 0.6% to around $2,055.
Investor sentiment shifted after a Wall Street Journal report said Trump was willing to end the conflict without reopening the Strait of Hormuz, a critical route for global energy shipments.
The report said U.S. officials concluded that reopening the waterway would extend military operations beyond Trump’s stated four- to six-week timeline. Instead, Washington is expected to prioritize targeting Iran’s missile systems and naval capabilities, followed by diplomatic pressure to reopen the strait.
The development came as Trump also issued new threats, warning that the U.S. could strike Iran’s key oil infrastructure, including Kharg Island, if no agreement is reached.
The Strait of Hormuz remains a key chokepoint, with roughly one-fifth of global oil and gas passing through it. Amid its effective closure since the start of the war, global markets remain uneasy over rising inflation and supply risks.
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