Brent Falls to $100 as Traders Bet on a U.S.-Iran Deal
Oil traders are pricing a U.S.-Iran settlement and discounting the threats around it. As of 9:40 a.m. ET on Wednesday, Brent had fallen $3.04, or 2.9%, to $100.60 per barrel, its third straight loss, and WTI had dropped $2.86, or 3%, to $93.23. Murban slipped $1.27 to $100.90. Both crude benchmarks traded higher early before reversing in a volatile session. President Trump told the Financial…
Oil markets have been driven down by expectations of a potential U.S.-Iran deal, with Brent crude sliding to $100.60 per barrel and WTI falling to $93.23. The two-day drop in both benchmarks is the third straight decline. President Trump stated that the U.S. has no immediate plans to attack Iran, expressing satisfaction with recent progress.
However, VP Joe Biden hinted at a possible heavy-handed response. Iranian officials claim the Strait of Hormuz could reopen within days if Washington complies with their demands, including lifting sanctions and releasing frozen assets. Despite escalation headlines, market sentiment has turned more negative, with profit-taking and reduced speculative long positions.
The new Democratic-controlled Congress could also limit war funding. Market analysts noted that global oil inventories remain low, with Middle East exports recovering and U.S. demand dropping significantly.
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