WTI crude oil trades at $89.60 as potential de-escalation in the US-Iran conflict and plans to resume exports through the Strait of Hormuz reduce supply-risk premiums.
WTI is already trading lower around $89.50-$89.60 after President Trump said further US military strikes on Iran are 'highly unlikely' if nuclear talks progress and the Strait of Hormuz reopens. De-escalation and Iraqi-brokered plans to resume oil exports reduce the supply-risk premium that has pushed oil and gasoline prices up. Rubio's warning that Iran's demands are 'unacceptable' is the main counterweight.
WTI crude oil prices retreated to $89.60 during Monday's Asian session following President Trump's comments that further military strikes on Iran are highly unlikely. Diplomatic progress, including Iraqi-brokered understandings to resume exports through the Strait of Hormuz, has eased supply-risk premiums. However, Secretary of State Marco Rubio cautioned that Iran's current negotiation demands remain unacceptable, keeping market volatility elevated.
President Trump said further US military strikes on Iran are 'highly unlikely' if there is significant progress in nuclear negotiations and the reopening of the Strait of Hormuz, and Iraq reported understandings with the US to resume oil exports through the Strait — reducing the supply-risk premium in the price.
Possibly: the Secretary of State described Iran's negotiation demands as unacceptable, and Iran has warned it would target US and Israeli assets in response to any future strikes, so a breakdown in talks or renewed military action could push prices back up.