06.04.202604:39:24UTC+00Oil Turns Lower on Ceasefire Hopes

WTI crude futures retreated toward $111 per barrel on Monday after touching as high as $115.5 earlier in the session, as reports of a potential Middle East ceasefire pressured prices. The US, Iran, and a group of regional mediators are reportedly negotiating a 45‑day truce that could lay the groundwork for a more permanent resolution to the conflict. This change in market sentiment followed President Donald Trump’s latest ultimatum to Iran and stepped-up threats against its civilian infrastructure should it fail to reopen the Strait of Hormuz. Tehran rejected the new demands, leaving the strait effectively closed. Separately, OPEC+ cautioned after a weekend meeting that war-related damage to energy infrastructure could exert a lasting drag on oil supply even after fighting subsides. The alliance approved an increase in output quotas to help address the global supply shortfall, while Iran signaled on Saturday that Iraq would be exempt from its restrictions in the strait.