Brent: Oil drops on Iran de-escalation hopes – Rabobank
Rabobank’s RaboResearch Global Economics & Markets team notes Brent Oil fell sharply to its lowest level since September as traders reacted to comments from Trump suggesting extensive strikes on Iran are unlikely if a strong agreement is reached.
Brent oil prices experienced a significant drop, falling to its lowest level since September, as traders reacted to remarks from President Trump suggesting extensive strikes on Iran are unlikely if a robust agreement is reached. The report highlights how perceptions of success in the Middle East are still uncertain following the US Midterm election results.
In response to Trump's announcement that it would be "highly unlikely" to order extensive strikes on Iran, assuming Iran signs a "very strong agreement", Brent crude oil plummeted $4.60, reaching a price of $93.70 per barrel. The definition of what constitutes a "very strong agreement" may be flexible, depending on how the Trump Administration plans to define "winning" in the Middle East after facing a defeat in the US Midterm elections.
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