Oil prices tumble after Trump remarks ease Iran tensions
Oil markets slipped after Donald Trump said violence in Iran had stopped, easing fears of instability and possible supply disruptions.
Oil prices fell sharply on Thursday after US President Donald Trump’s remarks eased concerns about growing unrest in Iran. Investors reacted after Trump suggested that violence against protesters in the country had stopped, calming fears of further instability.
West Texas Intermediate crude dropped 3 percent to $60.16 per barrel, while Brent crude slipped 2.93 percent to $64.57. The decline followed Trump’s statement that he had been informed the killings of protesters in Iran had been halted.
Speaking unexpectedly at the White House, the US president said he would “watch it and see” regarding any possible military action. He added that executions planned for the day would not go ahead, according to information he had received.
Trump has repeatedly voiced support for the Iranian people in recent days, condemning the government’s crackdown on protests. Human rights groups claim the unrest has resulted in at least 3,428 deaths so far.
Concern that the situation could restrict supplies of crude had caused oil prices to rise around 1.5 percent on Wednesday.
“Oil prices dropped… on comments from US President Donald Trump that Iran would refrain from any further killing of protesters, watering down fears of a looming supply shock in energy markets,” said Kyle Rodda of Capital.com.
Iran makes up three percent of global oil production; analyst Michael Wan of financial group MUFG noted this week.
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Wan said Thursday that Trump’s latest comments “come even as the United States has redeployed some personnel in Qatar and other American bases from ongoing geopolitical tensions and possible Iranian threats to target those locations”.
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