- US-Iran Possible Talk Plunged Oil Prices by 4 percent
Rising oil prices plunged by 4 percent on Tuesday as Iranian foreign minister Javad Zarif said Iran would welcome the US back to discussion table in a move to de-escalate global tensions.
Zarif, who spoke with NBC News, said the door is open for discussion if the US is willing to come back to the table.
“No, we are at the bargaining table. It is the United States that left the bargaining table,” he said. “And they are always welcome to return.”
President Trump responded shortly after, saying “the U.S. was not looking for regime change, although he did want them out of Yemen.”
He added that “they’d like to talk, and we’ll see what happens.”
Mike Pompeo, U.S. Secretary of State, said “for the first time” Iran was “ready to negotiate on their missile program.”
The comments plunged global oil prices by 4 percent as investors were expecting the tension between the US and Iran to bolster oil prices in the near-term.
Brent crude oil declined by 4 percent to $64.56 a barrel, while the West Texas Intermediate dipped to $57.06.
The fall in prices was because investors had anticipated middle east tensions will propel oil above the current level despite weak global demand and rising shale crude production.
But with shale production rising and US-China trade talks stagnant, the global expectation of commodity market dropped.