Oil falls as Trump tries to convince market an Iran deal is close
Oil prices dropped on Tuesday as President Donald Trump suggested that a deal with Tehran was imminent, despite recent clashes between Israel and Iran.
U.S. crude oil futures fell by about 2% to $89.40, while Brent futures, the international benchmark, lost 1.7% to $92.65 per barrel.
Trump mentioned that a deal to end the conflict with Iran could be reached in “two or three days,” leading to the reopening of the Strait of Hormuz.
However, tensions escalated this week as Iran launched missiles at Israel in response to Israeli strikes in Lebanon.
Trump urged Israel Prime Minister Benjamin Netanyahu to exercise restraint, resulting in a ceasefire between Iran and Israel.
Oil prices have surged following previous attacks and disruptions in the oil supply chain.
Despite efforts to pressure Iran into a deal, analysts predict a spike in oil prices as global stockpiles decline and summer demand rises.
JPMorgan analysts suggest that more oil may be passing through the Strait of Hormuz than reported, indicating potential hidden shipments.
