Oil benchmarks retreated for a third consecutive session as traders discounted geopolitical threats, with Brent falling to $100.60 per barrel following signals of de-escalation between Washington and Tehran.
Brent fell $3.04, or 2.9%, to $100.60 per barrel as of 9:40 a.m. ET on Wednesday, its third straight loss, after President Trump told the Financial Times Washington has no immediate plans to strike Iran. Traders are pricing a U.S.-Iran settlement, reducing the geopolitical risk premium in crude. The article notes a volatile session in which both benchmarks traded higher early before reversing, which argues against a smooth one-way move.
Traders are pricing a U.S.-Iran settlement after President Trump said Washington has no immediate plans to strike Iran, reducing the risk premium in crude.
Brent fell $3.04, or 2.9%, to $100.60 per barrel as of 9:40 a.m. ET on Wednesday.
WTI dropped $2.86, or 3%, to $93.23 as traders priced a U.S.-Iran settlement and discounted threats around it. President Trump's comment to the Financial Times that Washington has no immediate plans to strike Iran reduced geopolitical risk in crude. The article notes both benchmarks traded higher early before reversing in a volatile session, a counterpoint to the bearish move.
Traders are pricing a U.S.-Iran settlement after President Trump said Washington has no immediate plans to strike Iran, reducing the risk premium in crude.
WTI dropped $2.86, or 3%, to $93.23 per barrel.
Brent Crude fell 2.9% to $100.60 and WTI dropped 3% to $93.23 as markets priced in a potential U.S.-Iran settlement. The decline follows comments from President Trump indicating no immediate plans for military action against Iran, effectively reducing the geopolitical risk premium that had previously supported oil prices.
Prices are declining as traders price in a potential U.S.-Iran settlement, which has reduced the geopolitical risk premium previously embedded in crude benchmarks.
President Trump told the Financial Times that Washington has no immediate plans to strike Iran, leading traders to discount earlier threats and reverse initial gains.