Oil Drops as Trump Pauses Iran Strikes, Reversing War-Driven Surge
Oil futures declined after President Trump halted further strikes against Iran, unwinding last week's spike in Brent prices, Rabobank strategist Benjamin Picton said.
Rabobank’s Senior Macro Strategist Benjamin Picton highlighted that crude oil futures moved lower following the announcement that President Trump paused additional military strikes on Iran. The news cooled supply disruption fears that had pushed Brent sharply higher the previous week.
Geopolitical risk continues to inject volatility into energy markets, with prices reacting swiftly to any escalation or de-escalation signals. The pause in hostilities reversed much of the risk premium that had been built into the market.
The shift came as traders reassessed the immediate threat to oil infrastructure and exports, leading to a pullback from recent highs.
Source: FXStreet Forex News