News - Oil Prices Plummet Amid Eased Tensions Over Iran

Oil prices plunged on Thursday morning following statements from U.S. President Donald Trump that alleviated immediate fears of an American strike on Iran. Trump declared that Washington had information suggesting Iranian authorities had no further plans to 'carry out executions' of protesters involved in the country’s long-standing demonstrations. Earlier, the U.S. leader had threatened severe measures against Iran in response to its crackdowns on widespread protests, as per reports by Finmarket. Meanwhile, Iranian Foreign Minister Abbas Araqchi called for talks, asserting Iran's readiness for diplomacy, as reported by Fox News. He indicated that the government had shown 'maximum restraint' and had no plans to 'hang people because of protests.' Specialist market analysts, including Phil Flynn of Price Futures Group, noted that with the perceived reduction in attack risks, stock markets have surged while oil prices have dropped sharply. Notably, an NBC News report suggests Trump desires a 'decisive strike' against the Iranian regime, avoiding a prolonged conflict. However, he currently lacks assurances from advisors on this course of action. Further pressure on oil quotes stemmed from a U.S. Department of Energy report revealing an unexpected rise in oil and gasoline stockpiles for the previous week. As of the latest figures, U.S. oil reserves swelled by 3.39 million barrels, defying analysts' expectations of a 2.2 million barrel reduction. Gasoline stocks spiked by 8.98 million barrels, while distillates edged down by 29 thousand barrels. March Brent futures on the ICE Futures exchange fell by $2.15 (3.23%) to $64.37 a barrel. Similarly, WTI oil futures for February dropped by $2.03 (3.27%) to $59.99 a barrel, after a prior session increase by $0.87 (1.42%) to $62.02 a barrel.