WTI crude oil prices trade lower at $89.65 as President Trump's pledge to avoid pre-midterm election strikes on Iran reduces the geopolitical risk premium in energy markets.
WTI crude oil is experiencing downward pressure, trading near $89.65, as geopolitical tensions in the Middle East subside. The decline is directly linked to President Trump's explicit statement that the US will refrain from military action against Iran prior to the November midterm elections, which has effectively removed a significant risk premium from the oil market.
The price is declining because the removal of the threat of US military action against Iran has reduced the geopolitical risk premium previously embedded in oil prices.
WTI is currently trading around $89.65 during early European trading hours.
West Texas Intermediate crude oil prices retreated to $89.65 during Friday's European session. The decline follows comments from President Donald Trump ruling out military action against Iran prior to the November midterm elections, effectively cooling regional tensions.
Prices dropped as President Trump stated the US would not attack Iran before the midterm elections, reducing the risk of supply disruptions.