Global oil price retreats after hitting 4-year high on concern of US-Iran war escalation
Global oil prices retreated after hitting a four-year high of more than $126 a barrel today on concerns that the US-Iran war could worsen and lead to a protracted Middle East oil supply disruption that could hurt global economic growth.<\/p>\n
Earlier in the day, the market moved higher after Axios, citing unidentified sources, reported last night that US President Donald Trump is slated to receive a briefing today on plans for a series of military strikes on Iran in hopes it will return to negotiations on its nuclear programme.<\/p>\n
Prices later dropped without any obvious catalyst.<\/p>\n
Tamas Varga of oil broker PVM said the decline did not look related to a specific development and reflected the heightened volatility in the market since the Iran war started on February 28.<\/p>\n
“It just sums up the unpredictable nature of trading in a Trump world,” he said.<\/p>\n
Global oil benchmark Brent crude futures were down $2.05, or 1.7%, to $115.98 a barrel today after touching an intraday high of $126.41, the loftiest since March 9, 2022.<\/p>\n
The prompt contract for June delivery expires today. The more active July contract was at $109.93, down 51 cents or 0.5%.<\/p>\n
Two large sell orders for June Brent traded shortly before 9.30am, traders noted and LSEG data showed.<\/p>\n