U.S. President Donald Trump said he will end the war in Iran within three weeks. Concerns about oil demand destruction and potential energy rationing are still lingering in markets.
President Donald Trump's address left investors with concerns over a potential endpoint for the conflict
Trump's escalation warning pushed Asian stocks down and oil prices sharply higher. Markets reversed gains as hopes of a quick war exit faded.
Oil prices briefly fell after Donald Trump's comments raised hopes of a U.S. exit from the Iran conflict, but quickly rebounded as unresolved tensions and risks around the Strait of Hormuz kept supply concerns and upside momentum intact.
U.S. West Texas Intermediate crude futures for May dropped 0.43% to $98.42 a barrel as of 9:15 p.m. ET. International benchmark Brent crude was flat at $101.08 per barrel.
Oil prices fell more than $1 early on Thursday as markets awaited an address to the nation by President Donald Trump that could signal a U.S. pullback from the war in Iran.
Oil fell on the prospect of a quick end to the U.S.-Iran conflict. The markets have continued to price in de-escalation, said FOREX.com,
Ellen Wald, president of Transversal Consulting and senior fellow at the Atlantic Council, said that despite high oil prices she feels the price of brent should be even higher to reflect the reality of the situation amid the war with Iran. Wald said that the US could better insulate itself from the impacts of future energy crises by improving the interdependence between the US, Canada and Mexico in North American oil production.
President Donald Trump and Iranian President Masoud Pezeshkian both suggested the conflict could end soon
U.S. stocks looked set to extend Tuesday's rally, while blue-chip indexes surged in Asia and Europe. Investors will watch an address from Trump later for an update on the conflict.
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Brent contract for June delivery was up 1.5% at $105.56 a barrel as of 9:50 ET. UU.S. crude oil for May was up 1.5% at $102.92 a barrel.