Oil prices plunge nearly 3% after Trump says Iran protest killings have stopped | Markets react
&imwidth=600&imheight=450&format=webp&quality=medium "Oil prices plunge nearly 3% after Trump says Iran protest killings have stopped | Markets react")
Donald Trump, Inset: Oil rig Photograph: (Combination created using images from AFP, Canva)
Oil prices slid nearly 3 per cent after Donald Trump said Iran had halted killings of protesters, easing fears of imminent US military action. Markets reacted fast as geopolitical risk cooled, although uncertainty over Iran and US moves remains.
Oil prices late on Thursday (Jan 15) dropped by three per cent following US President Donald Trump's comments that Iran's security forces had stopped killing protesters. West Texas Intermediate dropped 3.0 per cent to $60.16 per barrel while Brent crude was down 2.93 per cent to $64.57.
What did Trump say?
Speaking at the White House on Wednesday (Jan 14), Trump said he had received assurances from what he described as "very important sources on the other side" that the violent crackdown on demonstrations had stopped and that planned executions would not go ahead. He offered no further details and stressed that the information had not yet been independently confirmed.
Also read | Iran accuses US of plotting 'regime change' after Trump tells protesters, 'HELP IS ON ITS WAY'
"They've said the killing has stopped and the executions won't take place," Trump said. "There were supposed to be a lot of executions today, and that the executions won't take place -- and we're going to find out."
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However, when pressed on whether US military action in Iran was now off the table, Trump struck a cautious note and said, "We're going to watch it and see what the process is".
Oil prices experience volatility amid Iran-US tensions
As the world awaits with bated breath a possible US military intervention in Iran, amid concerns that the situation could restrict supplies of crude, oil prices on Wednesday had risen by around 1.5 per cent. In the week which ended January 9, crude stocks had climbed by 3.4 million barrels to 422.4 million barrels, compared with analysts' expectations of a 1.7 million-barrel draw.
Analyst Michael Wan of financial group MUFG, who earlier this week noted that Iran makes up three per cent of global oil production, on Thursday said that Trump's latest comments "come even as the United States has redeployed some personnel in Qatar and other American bases from ongoing geopolitical tensions and possible Iranian threats to target those locations".
