U.S. crude oil falls below $100 per barrel after Trump says Iran talks in final stages
CNBC • • nation
Key Points:
- U.S. crude oil prices dropped below $100 per barrel following President Trump's announcement that talks with Iran are in the "final stages," signaling potential diplomatic progress.
- West Texas Intermediate futures fell over 6% to $97.74 per barrel, while Brent futures declined nearly 6% to $104.62 per barrel.
- Despite optimistic remarks by Trump, tensions between the U.S. and Iran persist, with Tehran blockading the Strait of Hormuz and Washington blockading Iranian ports, raising concerns over oil supply disruptions.
- Citibank warned that the market is underestimating the risk of prolonged disruptions in the Strait of Hormuz, predicting Brent prices could rise to $120 per barrel in the near term.
- Wood Mackenzie analysis suggests oil prices could surge to $200 per barrel if the Strait of Hormuz remains closed through the end of the year, but could fall to around $80 per barrel by late 2026 if a quick peace is achieved.