Oil prices continue a sharp retreat, with Brent down approximately 25% from its late-October peak above $117 following a 17% weekly loss, as markets price in a potential de-escalation of Middle East tensions.
Brent plunged to $89.70 on Tuesday, below $90 for the first time since August, after Trump signaled no strikes on Iran 'at this point', feeding hopes of a diplomatic deal mediated by Qatar. The benchmark is down about 25% from its late-October peak above $117 after a 17% weekly drop. Continued Houthi attacks on the Saudi East-West pipeline, which caused only a limited fire, have so far failed to halt the slide.
WTI traded below $85 per barrel on Tuesday, falling over 2% alongside Brent as Trump's signal that strikes on Iran are not needed and Qatar-mediated de-escalation hopes deflate the war premium. The selloff extends a steep rout in which Brent lost 17% last week. Houthi attacks on Saudi infrastructure have not reversed the trend.
Brent Crude futures dropped to $89.70 per barrel on Tuesday, marking the first time the benchmark has fallen below the $90 threshold since August. The decline follows signals from President Trump that further strikes on Iran are unnecessary, fueling optimism for a Qatar-mediated diplomatic resolution to the regional conflict.
Markets are pricing in de-escalation of the Middle East conflict after President Trump signaled no further strikes on Iran and Qatar is mediating a possible agreement, reducing the geopolitical supply-risk premium.
Brent fell below $90 per barrel on Tuesday, the first time since August, after tumbling 17% last week and about 25% from its late-October peak above $117.
Yes, WTI traded below $85 per barrel early Tuesday, down over 2%, tracking Brent's slide on hopes of Middle East de-escalation.