Oil prices fell on Sunday after an Iranian official told Reuters that Tehran would end its threats as long as the United States stopped bombing. The move ended nearly two weeks of escalating tensions.
Brent crude oil prices fell 7% to $90.9 a barrel. West Texas Intermediate crude fell as much as 7% to touch $84.
Tehran Implements Oil Contingencies
An Iranian source described Tehran’s “attack.” Iran will suspend its operations as soon as the US stops, and Tehran has already conveyed that message to Washington, according to media reports official account.
“There is more doubt than hope that the violence has been stopped.
The pause follows Washington’s idea that to stop his bombing campaign after the 13th night of the US. Advisers have reportedly warned President Donald Trump that the military is running short of what it can afford. He also reported on the depletion of stockpiled weapons.
U.S. Ambassador to the United Nations Mike Waltz said Mr. Trump made a tentative decision to provide a room for negotiations. Iranian officials spoke more doubt than hope that there will be peace.
Fed Sees Inflation Risk
HSBC US pricing strategist Dhiraj Narula he said Oil prices have revived bets that the Federal Reserve can keep rates high for a long time. He added that inflation expectations have remained unchanged so far. Narula credited the Fed’s message on price stability for that reassurance, which it has maintained gathering power from feeding to long-term forecasting.
Brent held close to $92 a barrel on Monday, confirming Sunday’s decline was not a reversal. Whether the suspension lasts through the week will test whether Tehran’s suspicions are correct, or whether the pause will turn into a permanent downward spiral.
A note Oil Drops 7% As Iran Signs Threats If US Stops appeared for the first time BeInCrypto.
