Oil Prices Tumble Amid Easing US-Iran Tensions and Rate Hike Expectations

Oil prices declined on Wednesday as easing tensions between the US and Iran, along with expectations of a 25-basis-point rate hike by the US Federal Reserve, reduced concerns over supply and demand. The international benchmark Brent crude futures for November delivery traded at $107.46 per barrel, down 1.3% from the previous close of $108.75.

The US House of Representatives passed a war powers resolution on Tuesday directing President Donald Trump to withdraw US forces from the conflict with Iran. Democratic member Gregory Meeks stated that the US had been involved in the conflict for nearly 200 days without achieving the Trump administration's stated objectives, citing rising gasoline and mortgage costs, inflation, billions in government spending, and US military casualties among the costs.

Expectations of a Fed rate hike are also weighing on prices. The Fed kept its policy rate unchanged at 3.50%-3.75% at its July meeting, while market expectations have increasingly pointed to a 25-basis-point rate hike in its decision due later in the day.