Oil price sinks to $65 after Trump’s speech
oIl prices plunged on Wednesday after President Donald Trump said Iran “appears to be standing down” in the Middle East and that the United States would impose sanctions on Iran instead of another military strike as feared by some investors.
The International oil benchmark, Brent crude, which was trading around $68 earlier in the day, fell to $65.39 per barrel as of 8:20 pm Nigerian time.
Brent, which rose above $70 per barrel on Monday, gave up all its gains for the year on Wednesday.
The US West Texas Intermediate crude dropped by 5.2 per cent to $59.45, its first time below $60 a barrel since December 16 and on track for its steepest daily decline since September 17, according to CNBC.
Trump’s comments on Wednesday came after Iran’s rocket attack on American forces in Iraq failed to destroy major energy infrastructure that could have disrupted global crude supply.
Trump also confirmed in his White House speech that no Americans were harmed during the bombing.
Iran launched more than a dozen ballistic missiles against multiple military bases housing the US troops in the early hours of Wednesday morning, according to Pentagon officia
Though Trump promised the US would respond to Iran’s attack with “punishing economic sanctions,” traders took the news as more dovish and a move toward de-escalation.
Meanwhile, the United Arab Emirates Energy Minister Suhail al-mazrouei told Reuters earlier on Wednesday that he saw no imminent risk to oil passing through the critical Strait of Hormuz.
He added, “We will not see a war,” he said from UAE capital Abu Dhabi. He added, “This is definitely an escalation between the United States, which is an ally, and Iran, which is a neighbour, and the last thing we want is more tension in the Middle East.”