Oil prices stabilised at around $106 a barrel on Tuesday morning after hopes of progress in ending the Iran war triggered sharp declines on Monday. Crude has been volatile in recent days as traders attempt to weigh the chance of the US and Israel resuming strikes against a possible breakthrough in efforts to end the more than eight-month-old conflict.
US President Donald Trump has ruled out launching a new wave of major strikes against the Islamic republic before Americans vote in Tuesday’s midterm elections. Brent crude, the international benchmark, was up 0.7 per cent at $105.55 a barrel in Tuesday morning trading in London, after US forces hit targets on Qeshm Island in the Strait of Hormuz late on Monday, in what American officials said was a “defensive measure”.
West Texas Intermediate, the US benchmark, was up 0.9 per cent at $97.25 a barrel. Brent settled 7.6 per cent lower at $104.77 a barrel on Monday, while WTI fell 7.4 per cent to $96.46 a barrel. Monday’s sharp drops came after Iranian President Masoud Pezeshkian said the country’s supreme leader had granted the government “certain authorities” in negotiations aimed at securing a deal with the US.
Source: Financial Times Markets · Summarized by HeadlinesBriefing