Oil Plunges After Trump Announces Final Stage of Iran Negotiations
Global oil prices fell sharply on Wednesday after US President Donald Trump stated that Washington was in the “final stages” of negotiations with Iran, fueling expectations of restoring oil flows through the Strait of Hormuz. West Texas Intermediate (WTI) crude briefly fell as much as 7% before rebounding to trade around $98.67 per barrel, while Brent for July delivery fell 5.2% to $105.54 per barrel.
Trump's announcement came amid the 12th week of a conflict that has restricted traffic flow in the Strait of Hormuz, boosting global energy prices and inflation concerns. A White House statement reiterated that “we'll see what happens” with Iran, signaling that a diplomatic agreement may be near.
In addition to geopolitical impacts, the market also adjusted after US crude oil inventory data showed declining export demand, as some foreign buyers reduced recent stockpiles. This helped calm the sell-off in the bond market, which had previously been closely linked to energy prices.
These oil price movements directly impacted global market sentiment. Stocks rose, as selling pressure in the bond market eased, indicating that investors were paying attention to the potential stabilization of energy supplies and its impact on inflation.
Although Brent and WTI oil prices remained above pre-war levels, this sharp decline marked the market's response to positive news regarding progress in US-Iran diplomacy. Investors are now awaiting further confirmation of the progress of negotiations before determining their next move in the energy market. (gn)
Source: Newsmaker.id
