US Crude Poised for Downside as Iran-US Diplomacy Eases Tensions
US crude oil prices are expected to open lower on Monday's Asian trading session after news of a tentative diplomatic discussion between the US and Iran significantly cooled geopolitical risk premiums over the weekend.
The 'Weekend Oil, US Crude' contract on retail trading platform IG fell 5.25%, or 471.2 points, to trade around $8,511.2, indicating West Texas Intermediate (WTI) futures are set for immediate downside pressure when formal market hours resume on Monday.
Reports suggest the Pentagon has paused its 13-day bombing campaign against Iranian targets over the weekend, with both Washington and Tehran signaling a willingness to pause hostilities and give regional diplomatic initiatives room to breathe.
US Ambassador to the United Nations Mike Waltz told Fox News that President Donald Trump is allowing talks to proceed, stating 'President Trump is locked and loaded if Iran continues its aggression.'