Donald Trump’s latest comments on Iran just sent oil prices tumbling. The President’s remarks on the state of negotiations triggered a sharp drop in crude benchmarks.
Donald Trump’s recent comments on Iran lowers oil prices
Oil prices fell sharply on Sunday after President Donald Trump signaled progress in negotiations with Iran, CNBC reported. West Texas Intermediate futures dropped about 5% to $91.65 per barrel. International benchmark Brent futures also declined around 5% to $98.30 per barrel.
“The negotiations are proceeding in an orderly and constructive manner, and I have informed my representatives not to rush into a deal in that time is on our side,” Trump said in a social media post on Sunday. He added that the U.S. blockade of Iran’s ports and vessels would remain in “full force and effect until an agreement is reached, certified, and signed.”
Trump said Saturday that an agreement with Iran to reopen the Strait of Hormuz was largely negotiated. He indicated an announcement would come soon. However, Trump has previously suggested the conflict was near resolution, only for tensions to escalate again.
U.S. crude oil lost more than 8% last week, while Brent tumbled more than 5%. Those declines followed Trump’s decision to call off imminent airstrikes against Iran. Prices have still surged more than 30% since the U.S. and Israel attacked Iran on Feb. 28.
Iran has maintained a de facto blockade of the Strait of Hormuz since early March. The blockade requires vessels to receive Iranian permission to pass or risk attack. Iran imposed it after U.S. and Israeli airstrikes killed Ayatollah Ali Khamenei and other top leadership.
The Strait of Hormuz ranks among the most important chokepoints for the global oil market. About 20% of the global oil supply passed through the sea lane before the war began. Iran’s blockade has dramatically cut Middle East oil exports, triggering the largest supply disruption in history.
