Oil prices hit two-month lows
NEW YORK: Oil prices slid about 2 percent to fresh two-month lows on Tuesday after US officials downplayed the need for additional military action against Iran, easing fears of additional Middle East supply disruptions. Brent futures fell USD1.93, or 2.1 percent, to USD90.64 a barrel at 10:28 a.m. ET (1528 GMT), while US West Texas Intermediate (WTI) crude fell USD1.44, or 1.7, to USD85.41. That…
Oil prices tumbled approximately 2 percent to record low levels on Tuesday, amid reassurances from US officials that military action against Iran is unnecessary. Brent futures fell $1.93, or 2.1 percent, to $90.64 per barrel, while US West Texas Intermediate (WTI) crude dropped $1.44, or 1.7 percent, to $85.41. Both benchmarks are poised to set their lowest close since August 28.
On Monday, both contracts bottomed out at their lowest since August 31. US Secretary of State Marco Rubio informed G7 allies during a Paris meeting that sanctions and naval blockade are proving so effective, President Donald Trump does not require immediate military operations in Iran. Trump, in a Reuters interview, affirmed continued naval blockade in the Strait of Hormuz, currently home to about 20 percent of global oil supplies.
The market seems to favor Trump's more tolerant approach toward Iran following the recent midterm elections, where voters focused on economic hardships linked to Trump's trade tariffs and heightened energy costs due to the Iran war.
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