Karachi (Commerce Desk) — Crude oil prices declined in the global market following US President Donald Trump’s statement about progress in negotiations with Iran and his decision not to take immediate military action.
According to international media, Brent crude fell by 72 cents, or 0.7%, to $103.53 per barrel, while US West Texas Intermediate crude dropped by 52 cents, or 0.6%, to $90.97 per barrel.
In his latest statement, Donald Trump said that the United States was holding productive negotiations with Iran and did not intend to attack the country before the midterm elections scheduled for November 3.
The US president’s statement raised investors’ hopes that a way could be found to end the ongoing war in the Middle East and improve oil supplies. However, fears of conflict in the region have not completely subsided.
On Thursday, attacks on ships carrying oil from the Middle East had pushed Brent crude prices up by around 4%, while tensions in the Strait of Hormuz continue to pose a threat to global energy supplies.
The United States has also imposed new sanctions on individuals and networks linked to Iran’s oil and petrochemical sectors, as well as 17 vessels.
Meanwhile, uncertainty persists in the global market as a tropical storm in the Gulf of Mexico has affected US oil production.
According to experts, future oil prices will depend on negotiations between Iran and the United States, the status of oil shipments through the Strait of Hormuz, and military tensions in the region.