Brent crude oil quotations on the London Stock Exchange ICE with a sharp drop reacted to the words of US President Donald Trump about a pause in strikes on Iran’s energy infrastructure amid talks with representatives of this country.
Within minutes, the price fell from about $108 a barrel to less than $92, but the quotes subsequently returned to just over $100.
On the morning of 23 March, US East Coast time, Donald Trump instructed to limit any military strikes on Iranian power plants and energy infrastructure for five days in order to continue the talks.
“I am pleased to report that the United States of America and Iran have had very good and productive negotiations over the past two days to fully and unconditionally end our military actions in the Middle East”, Trump wrote on his own Truth Social network.
Israel and the US have been striking Iran since 28 February. US President Donald Trump said the purpose of this war-destroying Iran’s military capabilities and preventing Tehran from developing nuclear weapons-was the goal. Iran has been striking Israel and countries in the region that co-operate with the US.
Iran blocked the Strait of Hormuz after the war in the Middle East began. Up to a fifth of all offshore oil exports (about 20 million barrels per day), as well as liquefied natural gas, used to pass through the strait. The fallout from this volume has already caused oil prices to spike and forced the International Energy Agency to open up reserves, releasing the largest volume in history of about 400 million barrels to the market. The U.S. has also temporarily lifted sanctions on Russian oil on ships at sea, as well as Iranian oil.
The price of oil fell sharply after Trump’s statement on talks with Iran