Brent Crude Falls 1.7% As Trump Signals Restraint On Iran.
Global oil prices fell on Monday after United States President Donald Trump played down the likelihood of renewed strikes on Iran, easing immediate concerns about further escalation in the Middle East, although attacks on vessels near the Strait of Hormuz continued to threaten supply routes.
Brent crude dropped by $1.65, or 1.7 per cent, to $96.67 a barrel, while United States benchmark West Texas Intermediate declined by 96 cents, or one per cent, to $89.87.
The decline followed Trump’s remarks on Sunday that fresh attacks on Iran were highly unlikely if negotiations to end the conflict continued to progress.
The comments helped ease concerns among traders about further military action, although uncertainty remains over whether diplomatic efforts will produce an agreement between Washington and Tehran. Despite the price decline, attacks on shipping in and around the Strait of Hormuz have kept concerns about global oil supplies in focus. Both the United States and Iran reported that vessels had been hit near the strategic waterway. The Strait of Hormuz is a major route for international oil shipments, making any disruption to maritime traffic a significant risk to global energy markets.
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