Trump Signals Diplomacy with Iran as Oil Prices Tumble
Oil prices have fallen by more than 2% to their lowest levels in over a week due to renewed hopes for US-Iran diplomacy. President Donald Trump signalled that he could meet Iranian President Masoud Pezeshkian, but warned Tehran that 'very big things' could happen if its behavior doesn't change.
The Brent crude futures price fell $2.16 to $101.71 a barrel, while US West Texas Intermediate (WTI) crude dropped $2.15 to $98.15, breaking below the psychologically important $100 level for the first time since September 10.
The decline in oil prices is partly due to investors unwinding some of the premium built into crude prices because of the threat to Middle East supplies. The diplomatic signals between Washington and Tehran remain fragile, however, with Iran warning that any fresh US attack would trigger sustained retaliation against US bases and interests in the region.