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Pause, Prices, Diplomacy
Oil prices fell after the United States and Iran paused their escalating strikes in the Persian Gulf, with NBC News reporting the pause was meant to make “space” for diplomacy.
“Oil prices drop after US pause in Iran strikes Matt Smith, director of commodity research at Kepler, shares his thoughts as oil prices are down since the U”
NBC News said Brent closed down by 8.7% at $88.36 per barrel and U.S. crude fell by 7.5% to $82.61 per barrel.
The Hill reported oil prices were down nearly 10 percent on Monday after a break in fighting over the weekend, with Brent futures trading at less than $91 per barrel after reaching more than $100 on Friday.
NBC News also tied the shift to President Donald Trump telling reporters aboard Air Force One that the U.S. was talking with Iran “right now,” adding he was not in a rush and had “plenty of time” for talks.
Waltz, Tehran, and Market Relief
CBS News said the oil drop reflected relief as the U.S. Ambassador to the United Nations told “Face the Nation with Margaret Brennan” that the break is aimed at “giving diplomacy some space.”
CBS News also reported that the Iranian regime insisted Monday that it is not engaged in any direct talks with the U.S., while acknowledging ongoing talks with Oman aimed at establishing “mechanisms regarding maritime traffic” in the Strait of Hormuz.
NBC News quoted Foreign Ministry spokesman Esmaeil Baghaei saying Tehran would “never allow America to determine the timing of war and peace” and would “continue to defend ourselves for as long as our interests and considerations require.”
NBC News added that along the Strait of Hormuz, just 29 verified transits were recorded from Friday to Sunday, according to an NBC News analysis of MarineTraffic data, as activity fell from 12 crossings Friday to six Saturday before increasing to 11 Sunday.
What Comes Next
NBC News said Trump told reporters Thursday he was considering a “massive attack” to try to break Iran’s grip on the strait, but that since then the U.S. and Iran have refrained from attacks for three days.
“Oil prices fell on Monday after reports that Iran had suspended its attacks in exchange for the United States continuing the ceasefire, easing fears of a broader conflict in the Middle East”
AP News reported oil prices eased in early trading Sunday after the United States and Iran refrained from launching military strikes in the Persian Gulf for a second straight day, with Brent for September dropping 4.9% to $92.02.
AP News also warned that if oil prices stay elevated, it could lead to higher prices for every product that gets shipped, trucked or flown around the world, including groceries, while noting the average U.S. price for a gallon of regular gasoline on Sunday was $4.11.
ABC News framed the same pause as a market trigger, saying oil prices are down since the U.S. and Iran paused their attacks in the Persian Gulf, as Matt Smith, director of commodity research at Kepler, shared his thoughts.
