Crude oil prices have fallen in the global market after US President Donald Trump announced progress in the ongoing talks with Iran and no immediate military action.
Brent crude oil price fell by 72 cents, or 0.7 percent, to $103.53 per barrel in the global market. Similarly, US crude oil West Texas Intermediate (WTI) also fell 52 cents, or 0.6 percent, to $90.97 a barrel.
US President Donald Trump has made it clear that positive talks between Washington and Tehran are ongoing and that the US has no intention of attacking Iran before the midterm elections on November 3. The president’s statement has raised hopes among investors that Middle East tensions may ease and oil supply routes may be smoothed.
Earlier on Thursday, Brent prices had surged by four percent on news of attacks on oil tankers in the Middle East. On the other hand, the ongoing tension in the Strait of Hormuz is still considered a major threat to global energy supplies.
The US administration has imposed new sanctions on individuals, networks and 17 ships linked to Iran’s oil and petrochemical sectors. In addition, a hurricane in the Gulf of Mexico has affected US oil production, which continues to cause uncertainty in the market.
According to economists, crude oil prices in the coming days will depend on the US-Iran diplomatic progress away from the Indo-Pakistan region, the security of shipping in the Strait of Hormuz and the military situation in the region.
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