Oil Slides After Market De-escalation Cue From Trump on Iran Tensions
Oil prices slipped sharply on Thursday after a Market De-escalation Cue eased investor anxiety. Comments from U.S. President Donald Trump reduced fears of immediate military action. As a result, traders reacted quickly.
Brent crude fell nearly 3 percent to close near $65 a barrel. Meanwhile, U.S. West Texas Intermediate dropped to around $60. Therefore, energy markets reversed earlier gains.
Trump Comments Calm Investors
Trump told reporters that violence inside Iran had stopped, according to trusted sources. He added that executions were no longer planned. However, he said officials would keep monitoring events.
Earlier this week, unrest inside the country had triggered global concern. Security actions reportedly caused heavy casualties. Because of this, traders had priced in higher risk.
Earlier Fears Had Lifted Oil
Oil values jumped earlier after Trump canceled talks with Iranian officials. He also publicly supported protesters, which unsettled markets. In addition, reports of military movement added to the tension.
For example, media outlets said some U.S. and British personnel left a key base in Qatar. The U.S. government also advised its citizens to leave Iran by land. These steps pushed prices higher before the reversal.
Caution Still Lingers
Despite the drop, analysts say caution remains. Deutsche Bank strategist Jim Reid noted that markets saw Trump’s remarks as a calming signal. Therefore, traders expect less immediate action.
However, Reid warned that uncertainty has not disappeared. Past surprise strikes still influence sentiment. In addition, Iran produces about 4 percent of global oil supply.
Because of that share, any disruption could affect prices worldwide. As a result, oil remains above recent lows. Markets now wait for clearer signals.
