Oil prices fell below $90 a barrel on Tuesday for the first time since August, after US President Donald Trump said renewed US attacks on Iran were “highly unlikely”. Brent crude, the global oil benchmark, fell as much as 3.6 per cent to $89.21 a barrel before recovering to about $90.50 a barrel. West Texas Intermediate, the US benchmark, was down 1.8 per cent at about $85.30 a barrel.
The easing of prices followed Trump’s remarks late on Monday that there was “positive momentum” behind US-Iran negotiations, adding that “Iran militarily is over”. Brent crude prices have now fallen about 23 per cent so far in November, which, if it holds, would be the biggest monthly drop since 2020.
The fall in oil has boosted stock markets globally, helping them rebound from last week’s sharp technology-led sell-off. The Stoxx Europe 600 index rose 0.9 per cent on Tuesday morning, adding to a 1.3 per cent increase on Monday. Japan’s Topix climbed 2 per cent on Tuesday.
“If there is further progress towards a US-Iran deal to end the conflict, it would help to sustain lower energy prices and ease pressure on major central banks including the Fed to keep hiking rates,” said Lee Hardman, senior currency economist at MUFG.
Source: Financial Times Markets · Summarized by HeadlinesBriefing