**Oil Prices Drop Following Short-Lived Surge Amid Geopolitical Tensions**
On Tuesday, April WTI crude oil closed at $83.45, down 11.94% from the previous day, following a spike to $119.48 on Monday after Israel bombed 30 Iranian oil depots. The G-7 finance ministers indicated readiness to support global energy supplies, including a potential release of oil stockpiles, as U.S. President Trump suggested that the conflict with Iran may soon resolve.
The U.S. Navy’s role in escorting vessels in the Strait of Hormuz is uncertain after a misleading social media post caused brief volatility in oil prices. The Strait is crucial, handling about 20% of the world’s oil, yet remains effectively closed, forcing Persian Gulf producers to cut production by roughly 6% due to capacity constraints. Meanwhile, OPEC+ plans to boost output in April appear jeopardized as producers face production cuts stemming from the ongoing conflict.
