Crude oil prices continued to fall Wednesday after President Trump said Iran is standing down in the Middle East and the U.S. will impose new sanctions on the nation instead of retaliating with military force.
Brent crude fell 4.4%, to $65.22 a barrel, down from a four-month high of $71.75 per barrel earlier in the day, Kallanish Energy reports. U.S. West Texas Intermediate crude fell 5.2%, to $59.45/Bbl, trading below $60/Bbl for the first time in nearly three weeks.
Crude spiked early Wednesday following an Iranian missile attack on military bases housing US and Iraqi personnel. The attack is believed to be retaliation for the U.S. last week killing Iranian Maj. Gen. Qassem Soleimani.
The commodity quickly fell early Wednesday when Trump tweeted “all is well” and the U.S. announced the attack had not caused any casualties.
Oil prices continued to fall later in the day when Trump’s statement signaled the U.S. will not use military force to further retaliate against Iran.
Investor worry that further tension in the area could disrupt regional crude supplies was also lowered after a statement from Opec.
“We are not forecasting a shortage of supply unless we have a catastrophic escalation, which we don’t see,” the United Arab Emirates’ energy minister, Suhail al-Mazrouei, told Reuters from Abu Dhabi yesterday.
This post appeared first on Kallanish Energy News.