Crude oil prices have slipped further as the benchmark Brent crude fell below $90 a barrel for the first time since August, extending its decline as traders increased bets that the war in the Middle East could be resolved.
BRENT FALLS FURTHER
The global benchmark dropped as much as 3.1% on Tuesday, following a nearly 6% loss the previous day. US President Donald Trump, under pressure to end the conflict after Republicans lost in the US midterm elections, said additional strikes on Iran would not be needed.
As per a Bloomberg report, oil prices have reversed sharply this month, retreating from a six-month peak reached at the end of October. US gasoline prices also dipped below $4 a gallon for the first time since July, easing some pressure on central bankers dealing with persistently high inflation, even as costs remain elevated.
The global benchmark dropped as much as 3.1% on Tuesday, following a nearly 6% loss the previous day. US President Donald Trump, under pressure to end the conflict after Republicans lost in the US midterm elections, said additional strikes on Iran would not be needed.
US-IRAN NEGOTIATIONS
The report said that the negotiations are expected to continue, with no likely military escalation while discussions are underway. At a meeting with Qatar’s prime minister, the US indicated that preserving diplomatic efforts and maintaining economic pressure on Iran offered the best path to resolving the conflict, the official said.
RUSSIA-UKRAINE
During months of intermittent talks, Tehran has demanded that the US lift its naval blockade of the country’s ports and remove sanctions. Washington, meanwhile, has urged Iran to stop attacks on vessels in the Strait of Hormuz and make concessions concerning its nuclear program.
Geopolitical risks in other regions remain in focus. Ukraine continues to attack Russian refineries, while Moscow repeatedly targets energy and civilian infrastructure in its neighbouring country. US-mediated talks between the two sides are taking place in Abu Dhabi.
The participation of more senior diplomats than in earlier rounds has been viewed as a sign of greater willingness to pursue meaningful negotiations after months of deadlock.
Also Read: Crude oil prices extend losses from three-month lows on Tuesday; Here’s why