Oil ticks lower as investors weigh mixed signals from Trump on whether U.S. will resume Iran war
Oil prices fell after U.S. President Donald Trump said he would postpone a planned military strike on Iran following requests from key Middle Eastern leaders.
Aliver
Crude oil prices edged lower Tuesday but remained well above $100 per barrel, as investors weighed mixed signals from President Donald Trump on whether he will resume military strikes against Iran.
International benchmark Brent crude futures were last down 0.65% to $111.37 per barrel. U.S. West Texas Intermediate futures fell 0.82% to settle at $107.77 per barrel.
Trump told reporters Tuesday that the U.S. might have to give Iran "another big hit." His renewed threat comes after he said he called off an attack scheduled for Tuesday at the request of the leaders of Qatar, Saudi Arabia and the United Arab Emirates.
Trump said Tuesday that Iran has a "limited period of time" to agree to a deal. He said Tehran has "two or three days, maybe Friday, Saturday, Sunday, something, maybe early next week."
Meanwhile, the U.S. seized an oil tanker linked to Iran in the Indian Ocean overnight, three U.S. officials told The Wall Street Journal.
Brent and WTI settled 2.6% and 3.1% higher, respectively, in the previous session, notching their sixth positive trading day in seven. Both contracts have advanced more than 50% since the Iran war began on Feb. 28.
Goldman Sachs forecasts every month the Strait of Hormuz remains closed adds $10 to the price of oil at year end, said Daan Struyven, head of oil research at the investment bank.
ING said oil markets are continuing to price in persistent supply disruptions in the Middle East, noting that hopes that China would help broker progress during recent Trump-Xi talks failed to materialize.
Analysts from the banking and financial services firm said some shipping activity through the Strait of Hormuz has resumed, including several crude tankers and a Vietnamese-bound Iraqi oil shipment, though flows remain well below normal levels and could deteriorate quickly.
"The ongoing supply disruptions mean the market has had to rely largely on inventory and alternative supply, where possible," they wrote.
