Global oil prices tanked below $90 a barrel for the first time since August, boosting selloff among traders amid hopes of a resolution to the Middle East war.
Brent dropped over 3% on Tuesday after slipping nearly 6% in the previous session. This comes after US President Donald Trump said further strikes on Iran wouldn't be necessary.
Brent crude futures fell 3.3%, to $89.3 a barrel on Tuesday, while US West Texas Intermediate crude futures declined 2.6% to settle at $84.1. Crude prices have witnessed massive drop this month, with prices tumbling from the six-month high reached at the end of October.
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The latest decline comes days after Republican Party's midterm loss, with Trump indicating that he's looking to pursue diplomacy with Iran and end the war after a meeting with the prime minister of Qatar, the main mediator between the warring sides.
More strikes on Iran won't be necessary, though the US remains “locked and loaded,” Trump said on Monday following talks with Sheikh Mohammed bin Abdulrahman Al Thani. “Iran, militarily, is effectively over. We're just keeping it at the status quo, and we're doing that really at the behest of countries that are their neighbors.”
His remarks highlight the shift in Washington's stance since the Nov. 3 midterm elections. Several members of Trump's party alleged that the war and resulting jump in energy prices for their loss of both houses of Congress to the Democrats.
Sheikh Mohammed thanked Trump and Vice President JD Vance and claimed that the conflict was the major reason for the Republicans' defeat. He said, he was “grateful for the positive discussions on reaching a deal and bringing peace to the region.”
Talks between Iran and the US will carry on and there likely won't be any military escalation while they do, Bloomberg reported citing an official familiar with the matter. During the meeting with the Qatari prime minister, the US signaled that maintaining the status quo of diplomacy and applying economic pressure on Iran was the best way to resolve the conflict, said the person, who declined to be named discussing sensitive matters.
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