Oil prices edged lower on Tuesday, extending losses from the previous day, after U.S. President Donald Trump said U.S. military action against Iran is not necessary “at this point”, easing concerns about prolonged disruptions to Middle East supply.
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Oil prices popped Thursday, after the latest comments from President Donald Trump raised worries that an end to the U.S.-Iran war was not in sight.
Brent crude traded 1.6% higher at $94.25 per barrel. West Texas Intermediate futures gained 1.3% to trade at $87.62 per barrel.
“We don’t need a deal with Iran. Those days have long since passed. We’ve got their money, Hundreds of Billions of Dollars, and we’ve got their Strait!” Trump said in a Truth Social post.
“The President may be thinking that given enough time, the economic blockade of Iran will force them to either negotiate with the USA or result in a regime change as the Iranian economy collapses. The Iranians might have different ideas and continue to attack Middle East Infrastructure that results in higher prices and forces the President to the negotiating table,” said Andy Lipow, president of Lipow Oil Associates.
“In any event, it does not seem to me that either side’s negotiating position has changed. Iran wants the blockade to end, sanctions to be lifted and a ceasefire including Lebanon to be declared. The USA wants Iran to get rid of its entire nuclear stockpile and allow free transit through the Strait of Hormuz,” he said.