Oil prices plunge 4% after Trump says “no military intervention”

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\r\n[Financial News] International oil prices tumbled by more than 4% on the 15th (local time) as expectations of imminent United States military intervention in Iran weakened. As concerns over supply disruptions from the Middle East eased, the sharp rally that had continued until the previous day reversed in just one session.
On the ICE Futures Exchange, March delivery Brent Crude Oil futures settled at $63.76 per barrel, down 4.15% from the previous session. On the New York Mercantile Exchange (NYMEX), February delivery West Texas Intermediate crude oil (WTI) closed at $59.19 per barrel, a decline of 4.56% from the prior day.
The immediate trigger for the sharp drop in oil prices was a remark by President Donald Trump. On the afternoon of the previous day, Trump said, “We have heard that the killing (of protesters) in Iran has stopped,” signaling that US military intervention against Iran was not imminent. This quickly eased concerns in the international oil market over potential supply disruptions in the Middle East.
Previously, international oil prices had surged after Trump warned on the 13th that “the hand of help is on the way,” hinting at possible intervention in response to the Iranian government’s harsh crackdown on anti-government protests. Market expectations that US military involvement could heighten geopolitical risks across the broader Middle East surrounding Iran had pushed oil prices higher.
On top of this, reports that the United States Armed Forces (US Armed Forces) had issued partial withdrawal recommendations for Al Udeid Air Base in Qatar, known as the largest US base in the Middle East, further fueled the rally, sending WTI futures at one point above $62 per barrel the previous day. This was the highest level since October of last year.
However, following Trump’s remarks, the perception spread that the possibility of immediate military intervention was unlikely to materialize, and the geopolitical risk premium evaporated rapidly within a day. Market observers note that, for the time being, volatility in international oil prices could increase depending on developments in the Middle East situation and shifts in messaging from The White House.
#international_oil_prices #Brent_Crude_Oil #WTI #Donald_Trump #Middle_East_risk
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km@fnnews.com Kim Kyung-min Reporter