US Halts Strikes on Iran, Oil Prices Fall Amid De-Escalation Expectations
Oil prices fell as expectations for de-escalation strengthened after the US halted strikes on Iran. The halt in strikes, which came after 13 days of attacks, was met with optimism from traders who saw it as an early sign of a potential de-escalation.
The halt is expected to remain in place so long as the US continues to pause its actions, according to statements from Iran. However, traders are cautioning that things can re-escalate quickly with just one tweet from Trump.
On the daily chart, crude oil broke out of a major downward trendline last week but was unable to sustain the breakout following positive developments on the US-Iran front. The sellers piled in as the price fell back below the trendline and will target the support zone around $78.00.