Oil falls to two-month low after Trump calls off further Iran strikes
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The news: Oil fell to a two-month low after Trump said a peace agreement with Iran could be signed as soon as the weekend, raising hopes for an end to the conflict.
West Texas Intermediate crude dropped nearly 3% at the open to USD85 ($120) a barrel, its lowest level since April 17, before recovering some of its losses, according to Bloomberg.
The context: The move followed a dramatic shift in US policy after Trump threatened on Wednesday (ET) to target Iran’s oil infrastructure and launched a second day of military strikes against Tehran, accusing the country of delaying talks on an interim peace deal. Less than a day later, Trump said the planned attacks had been called off and that a deal was close.
Iran has not formally approved any agreement with the US, according to the semi-official Fars news agency.
Trump told reporters in the Oval Office that a signing could take place as soon as this weekend in Europe and that Vice President JD Vance would attend if an agreement is reached.
Meanwhile, fuel stockpiles in Singapore have fallen to their lowest level since 2013, while US crude inventories have declined sharply over the past five weeks, Bloomberg reported.
The source: Bloomberg
