Oil Slides as Deal Hopes Grow, But Sustained Decline Remains Uncertain

The price of Brent oil settled nearly 9% lower yesterday after US President Trump said there's a 'good chance' of a deal between the US and Iran, but warned that strikes would resume if talks fail.

ING Think notes that while the market may be getting ahead of itself, it's not impossible for the trend to continue. However, a sustained decline in oil prices will require improvement in tanker flows through the Strait of Hormuz.

The ongoing tensions between the US and Iran have also impacted other markets, with gold prices rising as inflation concerns ease following the decline in oil prices. Copper has also pushed higher, benefiting from tight physical conditions and low inventories.