Oil edges lower as Trump plays down prospect of new US attacks on Iran
Oil fell on Monday after US President Donald Trump played down the prospect of new strikes on Iran, although supply disruption in the Strait of Hormuz remains in focus as attacks on ships continue. Brent, the benchmark for two thirds of the world's oil, was down 1.83 per cent at $96.52 a barrel at 1.23pm UAE time. West Texas Intermediate, the gauge that tracks US crude, was trading 1.30 per cent…
Oil prices slipped on Monday as US President Donald Trump downplayed the likelihood of further attacks on Iran, reports indicate. Brent crude, the global benchmark, slipped 1.83% to $96.52 per barrel, while US West Texas Intermediate crude fell 1.30% to $89.65 per barrel. Market analysts cited a diplomatic breakthrough between Washington and Tehran as a key driver behind the price drop, noting that President Trump's comments on the unlikelihood of additional strikes appeared to be unwinding the geopolitical risk premium.
The US leader indicated he wouldn't resume war with Iran as long as negotiations over Tehran's nuclear program and the reopening of the Strait of Hormuz progressed. Qatar's Prime Minister is set to meet with Trump at the White House, potentially paving the way for a breakthrough in the talks. The Strait of Hormuz, through which about 20% of global oil and liquefied natural gas shipments pass, remains a critical chokepoint for energy supply, with attacks on ships continuing to disrupt crude flows.
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