Global oil prices fell during Asian trading after U.S. President Donald Trump signaled optimism about reaching a potential agreement with Iran, easing geopolitical concerns.
Reports from Tokyo on February 2nd said WTI crude futures dropped as much as 3.4% to USD 62.99 per barrel, while Brent crude fell 3.2% to USD 67.09 per barrel. The decline followed a recent rally that had pushed oil prices to multi-month highs amid fears of possible U.S. military action against Iran.
Those concerns centered on the risk of disruptions to oil shipments through the Strait of Hormuz, a critical global energy route. However, Trump’s weekend comments that he “hopes we can reach a deal” with Tehran shifted market sentiment, leading to a sharp drop in the geopolitical risk premium priced into oil markets.
