Brent Crashes Below $80 Amid Geopolitical Tensions
Oil prices plummeted on Tuesday, with Brent falling below $80 for the first time in nearly a month. The decline was driven by conflicting claims over possible negotiations between the US and Iran.
US President Donald Trump said Washington was restarting talks with Tehran, claiming the latter was keen to forge a deal, but eventually blasted Iran for being 'duplicitous' in their stance. However, Iran quickly denied this, stating that their only active discussions were with Oman on the reopening of the Strait of Hormuz.
Brent, the benchmark for two-thirds of the world's oil, dropped 4.87% to $79.69 a barrel at 7:49 pm UAE time. West Texas Intermediate (WTI), the gauge that tracks US crude, retreated 5.35% to $76.04 a barrel.
The ripple effects of the war on global oil prices have made it difficult for governments and energy companies to predict where the market is heading. Ahmad Assiri, a research strategist at Australia-based broker Pepperstone, said 'investors remain reluctant to fully price out the risk of renewed escalation, leaving the market front and centre influenced by geopolitical headlines.'