Trump's Talks with Iran Send Oil Prices Tumbling
Oil prices fell on Wednesday after US President Donald Trump announced that American and Iranian representatives had held talks at the United Nations. Brent crude, the international benchmark, traded at $98.41 a barrel in European morning sessions, while US benchmark West Texas Intermediate cost $89.21 a barrel for next month delivery.
The three-hour meeting between the US and Iran was described by Trump as 'very good' and 'very productive', with another meeting planned soon. This development shifts the market's focus from pure escalation pricing to a genuine diplomatic process, according to Stephen Innes of Quintex Intel.
The talks came after Trump told the UN that he faced a 'big decision' on whether to reach a deal with Iran or 'annihilate the Islamic Republic and do it quickly'. The US and Iran remain at an impasse, with Iran keeping the Strait of Hormuz closed and the US maintaining a blockade of Iranian ports.