WTI Oil plunges as Trump revives US-Iran peace hopes
West Texas Intermediate (WTI) US Oil trades around $78.45 at the time of writing on Monday, down 7.76% on the day, as investors unwind the geopolitical risk premium following announcements of a potential agreement between the United States (US) and Iran.
West Texas Intermediate (WTI) oil prices dropped around 7.76% on Monday, reaching $78.45, as geopolitical concerns eased following potential announcements of a US-Iran peace deal. President Donald Trump stated that a large-scale military strike against Iran was suspended after Tehran agreed to a deal covering its nuclear program and reopening the Strait of Hormuz.
Talks between the two countries were set to begin that afternoon, which fueled hopes of de-escalation and reduced risk to global oil supplies. However, Iran's Foreign Ministry remained cautious, saying they had no discussions with the US about reopening the Strait of Hormuz, while confirming ongoing talks with Oman. OPEC+, comprising major oil-producing countries, also announced a production increase of 188,000 barrels per day from September, further contributing to the downward pressure on oil prices.
Despite the optimism, strategists cautioned that any potential agreement might not be enough to generate sufficient oil flow through the Strait of Hormuz.
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Also reported by 1 other outlet
- Oil falls, stocks gain amid Iran peace hopes; yen firms after intervention channelnewsasia.com
