Oil slides as Iran strike fears ease — Brent falls
Brent crude slides 6.17% amid reduced fears of Iran strike escalation
Oil futures fell sharply early on Tuesday (Nov. 10), as hopes of reduced US-Iran tensions weighed on prices despite continuing threats to commercial shipping.
Brent crude futures stood at $92.25 a barrel, down $6.07, or 6.17 percent, per OilPrice.com at 7:54 am Tokyo time.
US West Texas Intermediate futures traded at $86.85, falling $3.98, or 4.38 percent.
Murban physical crude moved in the opposite direction, rising $3.28, or 3.42 percent, to $99.17 a barrel.
The sell-off followed President Donald Trump’s comments downplaying the likelihood of renewed strikes against Iran.
Reuters reported that Brent settled Monday at $92.57, down $5.75, or 5.85 percent, before extending losses in post-settlement trading.
The Brent quote was below Monday’s settlement.
The decline highlights traders’ shifting assessment of supply risks.
Diplomatic optimism is reducing the premium associated with feared military escalation, but attacks on ships near the Strait of Hormuz continue to complicate expectations for a sustained recovery in regional energy flows.
Risk assessment
Brent’s retreat follows last week’s steep decline as markets reassessed war-related supply risks.
Reuters reported that Middle Eastern producers were cutting prices to attract buyers as recovering Hormuz flows raised oversupply concerns.
Nevertheless, continuing ship attacks mean improved sentiment has not eliminated the danger of renewed disruption to energy trade.
What’s next
Watch for confirmed diplomatic progress, sustained shipping recovery through Hormuz and fresh security incidents.
Any escalation, however, could reverse the sell-off, while steadier flows and competitive producer pricing could deepen pressure on crude benchmarks this week.
