Brent crude oil fell $4.60 to $93.70 per barrel as markets priced in lower geopolitical risks following Trump's comments on potential Iran negotiations.
Brent sank $4.60 to $93.70/bbl, its lowest level since September, after Trump called extensive strikes on Iran 'highly unlikely' if Iran signs a 'very strong agreement'. Reduced supply-disruption risk lowers the geopolitical risk premium in oil. However, the flexibility of what counts as a deal and post-Midterm uncertainty could reverse the move.
Brent crude oil dropped to $93.70 per barrel, marking its lowest level since September. The decline follows weekend comments from Trump suggesting that extensive strikes on Iran are unlikely if a strong agreement is reached, effectively reducing the geopolitical risk premium.
Traders are pricing a lower risk of extensive US strikes on Iran after Trump said such strikes are highly unlikely if Iran signs a 'very strong agreement', cutting the geopolitical risk premium built into the price.
Brent sank $4.60 to $93.70/bbl, its lowest level since September.