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.
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.
Prices later dropped without any obvious catalyst.
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.
"It just sums up the unpredictable nature of trading in a Trump world," he said.
Global oil benchmark Brent crude futures were down $3.94, or 3.3%, to $114.10 a barrel today after touching an intraday high of $126.41, the loftiest since March 9, 2022.
The prompt contract for June delivery expires today. The more active July contract was at $109.93, down 51 cents or 0.5%.
Two large sell orders for June Brent traded shortly before 9.30am, traders noted and LSEG data showed.
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