Trump's Talks with Iran Send Oil Prices Tumbling Further
Crude oil prices continued their decline on Tuesday as US President Donald Trump's comments on talks to end the Middle East conflict fueled hopes of a resolution. Global benchmark Brent crude fell towards $87 a barrel, down from Monday's loss of 8.7%.
The price drop comes after Trump said that there was a 'good chance' for progress in talks with Iran, but it remains unclear if any substantial discussions are taking place. The US and Iran have been engaged in a war since February, with the conflict affecting oil production and prices.
Trump's decision to pause strikes on Friday has given negotiations another chance, according to Axios. However, traders remain cautious as tanker traffic through the Strait of Hormuz has yet to normalize.
'I don't think the Middle East is 'solved', said Scott Shelton, energy specialist at TP ICAP Group Plc. There needs to be 'real evidence of oil moving through the Strait of Hormuz, which I think has yet to happen,' he added.