Oil prices dip after sharp gains.
Oil prices edged down in Asian trade on Wednesday after rallying for three straight sessions, as traders weighed continued disruption to shipping through the Strait of Hormuz, and assessed U.S. inventory numbers.
As of 20:19 ET (00:19 GMT), Brent Oil Futures expiring in July fell 0.4% to $107.36 per barrel, while West Texas Intermediate (WTI) crude futures inched 0.3% lower to $101.91 per barrel.
Both contracts jumped more than 3% in the previous session.
Markets remained on edge after U.S. President Donald Trump described prospects for a ceasefire with Iran as being on “life support” and rejected Tehran’s latest response to U.S.-backed peace proposals, raising fears that the conflict could drag on.
The Strait of Hormuz, through which roughly a fifth of global oil consumption normally flows, remains largely shut to commercial traffic after Iran tightened restrictions following the outbreak of war earlier this year.
The U.S. Energy Information Administration said on Tuesday it now expects the Strait to remain effectively closed through late May, forcing a much steeper drawdown in global inventories than previously forecast.
Gold prices steady amid fading Iran peace hopes.
Gold prices held steady in Asian trading on Wednesday, remaining largely rangebound this week, as investors turned cautious amid fading hopes for a U.S.-Iran peace deal and awaited a meeting between Donald Trump and Chinese President Xi Jinping.
Spot gold edged down 0.2% to $4,705.50 per ounce by 21:39 ET (01:39 GMT), while U.S. Gold Futures rose 0.6% to $4,713.00/oz.
Bullion fell 0.4% in the previous session on the back of a firmer dollar and elevated U.S. inflation readings.
Market sentiment remained fragile after Trump said earlier this week that negotiations with Iran were on “life support” following Tehran’s rejection of a U.S.-backed proposal aimed at ending the conflict and reopening the Strait of Hormuz.
Bitcoin slips to around $80.5k.
Bitcoin edged lower on Tuesday, after a hotter-than-expected inflation report boosted bets for interest rate hikes later this year. A protracted deadlock between the U.S. and Iran also weighed on risk sentiment.
The world’s largest crypto slipped 1.4% to $80,591.2 by 17:33 ET (21:33 GMT).
Bitcoin had risen as high as $82,000 over the weekend, but trimmed some gains amid signs of heightened U.S.-Iran tensions. The focus this week is also on a U.S.-China summit, which comes amid frayed relations between the world’s two largest economies.
Dwindling hopes for a U.S.-Iran peace deal
President Donald Trump told reporters on Monday that a ceasefire between Washington and Tehran was on “massive life support” after he rejected Iran’s response to an American peace proposal.
Trump dismissed the counteroffer, which was similar to plans previously floated by Iran, in strident terms, calling it “unacceptable” and later “a piece of garbage” that he did not even believe was worth reading fully.
The April CPI report comes at a time of transition for the Federal Reserve, with incumbent chair Jerome Powell’s term coming to an end in three days. He is expected to be replaced by President Donald Trump’s pick Kevin Warsh, a former Fed governor.
Expectations for interest rate hikes in September, October, and December ticked up after the CPI report, the CME FedWatch tool showed. Higher interest rates bode poorly for speculative assets such as crypto.
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