Brent crude slips below $90 a barrel after Trump plays down further Iran strikes
He said the conflict could be ending fairly soon, while adding that the United States was still locked and loaded. Flows through the Strait of Hormuz have largely recovered, though an energy consultant said he still sees no prospect of a peace deal.
By James Mitchell ·
Why it matters: The drop reflects markets unwinding some of the risk premium around the Iran conflict, but Trump's remarks are not a completed deal, and FGE's Fereidun Fesharaki said he still sees no prospect of one.
For information only, not investment advice.
Brent crude slipped below $90 a barrel on Tuesday, the lowest since Aug. 31, after President Trump played down the need for military action against Iran.12
Speaking Monday at the White House after meeting Qatar's prime minister, he said the conflict could be ending fairly soon. "Iran militarily is effectively over," he told reporters, CNBC reported.1 He also said, according to The Guardian, "At this point, taking the military action doesn't seem to be a very necessary thing – but we're locked and loaded, ready to go for any reason."3
Oil flows through the Strait of Hormuz have largely recovered.1 ING's Ewa Manthey and Warren Patterson said the market has continued to unwind some of the geopolitical risk premium, but they expect oil prices to remain sensitive to Middle East developments.1 FGE's Fereidun Fesharaki said he still did not see any prospects of a peace deal.1
Sources
Tags: energy · markets-moves · white-house