Oil Prices Slide After Trump Remarks Eases Iran Tension Fears

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Oil prices.

Oil prices fell by around 3 per cent in Asian trading on Thursday, snapping a five-day winning run as markets reacted to comments by U.S. President Donald Trump that appeared to lessen the likelihood of imminent military escalation with Iran. Brent crude futures dropped to about $64.7 a barrel, while West Texas Intermediate (WTI) also declined to near $60.2.

The previous rally, which had pushed crude to multi-month highs, was driven by concerns that unrest in Iran might disrupt production or key shipping routes. Traders had built in a significant geopolitical risk premium amid fears Washington might intervene directly.

In his remarks, Trump suggested that alleged killings of protesters in Iran were subsiding and that Tehran had no plans for large-scale executions, reducing expectations of a U.S. military response. This helped ease near-term supply disruption fears.

Adding to downward pressure, the U.S. president also pointed to positive engagement with Venezuela, another major oil producer, which raised hopes that its exports may increase over time and ease global supply constraints.

Traders were also mindful of data showing a build-up in U.S. crude stocks and ample supplies of refined products, which further weighed on prices despite ongoing geopolitical uncertainties.


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