Oil prices have tumbled as markets react to reports of potential U.S.-Iran de-escalation, with Brent shedding 22% from its late-October peak of $118 per barrel.
Brent fell below $92 to $91.61 per barrel after reports that Trump does not plan to attack Iran 'at this point' and that the US may allow enrichment to almost 4%, cutting the war risk premium. Brent has already shed 22% from its end-of-October high of $118. Rising OPEC output adds to bearish pressure, though unconfirmed reports and ongoing Houthi attacks limit certainty.
WTI dropped to around $85.81-$86 per barrel, down about 1.24% on the session and following Brent's 7% crash on Monday, as Trump signalled restraint on Iran and OPEC supply rose. The same bearish drivers apply, with the risk that unconfirmed reports and continued attacks on shipping reverse the move.
Brent crude and WTI prices have retreated significantly, falling to $91.61 and $85.81 per barrel respectively. The decline follows reports that President Trump does not plan to attack Iran at this time and potential U.S. openness to Iranian uranium enrichment, which has eased the war risk premium. Despite ongoing Houthi attacks on Saudi infrastructure, markets are currently prioritizing these de-escalation signals.
Reports cited President Trump as not planning to attack Iran 'at this point', and other reports said the US was open to letting Iran enrich uranium to almost 4%, which eased the war risk premium and pushed Brent down 7% on Monday to $91.61 per barrel.
Possibly: the de-escalation reports are unconfirmed, Houthis keep attacking Saudi infrastructure, and tanker attacks in the Strait of Hormuz continue, any of which could push a fresh risk premium back into the market.
WTI was trading around $85.81 per barrel after Brent crashed 7% on Monday on de-escalation hopes; Brent has shed 22% from its late-October high of $118 per barrel.
The US-Iran reports are unconfirmed, and continued Houthi attacks on the Saudi East-West pipeline and tanker attacks around the Strait of Hormuz could re-inject a risk premium into prices.