[Oil Prices] Brent crude plunges 5%... Trump: “Low likelihood of ordering an attack on Iran”

[Financial News]  

International oil prices plunged on the 9th (local time).
Despite continued attacks on tankers near the Strait of Hormuz, oil prices fell sharply after U.S. President Donald Trump said the previous day that the likelihood of resuming airstrikes against Iran was very low.
Brent crude, the international oil benchmark, for delivery in January next year plunged 5.4% from the previous session to $92.97 a barrel. Last week, Brent crude had plunged 16%, falling to $93.22 a barrel, its lowest level in two months.
West Texas Intermediate (WTI), the U.S. oil benchmark, for December delivery also plunged 4.1%, falling to $87.15 a barrel.
Trump had earlier said he was unlikely to order another attack on Iran as long as talks to end the war were underway. The statement was positive news that outweighed concerns about a supply squeeze following repeated attacks on vessels in and around the Strait of Hormuz.
In an analysis note, TAC Energy said that although the actual fighting was not slowing, expectations of peace were fueling selling in the oil market.
A report said that the foreign ministers of Saudi Arabia and Oman agreed in a phone call that day that diplomatic efforts should continue to address the regional crisis, ensure maritime safety and secure shipping routes. Trump is scheduled to meet that day with Qatar’s president; Qatar is mediating the negotiations.
The prevailing view is that talks between the United States and Iran are unlikely to gain sudden momentum, in line with Secretary of State Marco Rubio’s remarks that Iran’s demands are excessive and an immediate agreement is unlikely.

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