Oil prices fell late Wednesday after US President Donald Trump forfeited any plans to strike Tehran.
Brent crude futures dropped about 4 percent to around $64 a barrel after Trump indicated that violence involving Iran was subsiding. The decline came after international benchmark oil prices had risen roughly 11 percent over the previous five trading sessions.
Earlier on Wednesday, crude futures had climbed to their highest closing level in three months, supported by escalating regional tensions and expectations of possible US military action against Iran.
Most disruptive scenario for oil prices would involve a US strike triggering Iran to block the Strait of Hormuz, a key chokepoint for global energy shipments. The absence of immediate escalation following Trump’s remarks eased those concerns, and oil prices started falling.
Top exporters might consider pausing production or slash exports to big markets for the time being to bring price movements to a cooling phase.
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