Oil prices dropped sharply Thursday after US President Donald Trump appeared to ease threats of immediate military action against Iran, easing earlier fears of supply disruption.
Brent North Sea crude and West Texas Intermediate (WTI) both fell nearly 4 percent following Trump’s comments on Wednesday that he would “watch it and see” regarding intervention in the Islamic republic. He added that he had been informed the crackdown on protesters had stopped.
Crude had surged in recent days amid speculation that Trump might act in support of Iranian demonstrators, raising concerns over potential global supply disruptions.
“Oil prices are trading sharply lower after Trump signalled he is not taking military action against Iran,” said Victoria Scholar, head of investment at Interactive Investor.
Other commodity markets also saw volatility. Silver plunged more than 7 percent in Asian trading after recently hitting a record above $93.75 an ounce, following Trump’s decision to delay tariffs on critical minerals. Gold, often a safe-haven asset, dipped slightly.
Stock markets showed more muted moves. London’s FTSE 100 hit a record high after official data indicated Britain’s economy rebounded in November. Frankfurt’s DAX was flat as Germany narrowly avoided a third consecutive year of recession. Paris’s CAC 40 slipped slightly, partly due to a drop in TotalEnergies shares following the oil decline.
In Asia, Tokyo closed down 0.4 percent after gains driven by speculation of a snap election by Prime Minister Sanae Takaichi, aimed at advancing her policy agenda.
On Wall Street, stocks fell modestly Wednesday despite strong US bank earnings and higher November retail sales, as investors remained wary of potential US interventions in Greenland and Trump’s recent criticism of Federal Reserve independence.
Key market figures (around 1100 GMT):
- Brent North Sea Crude: DOWN 3.8% at $64.03/bbl
- West Texas Intermediate: DOWN 3.8% at $59.69/bbl
- London FTSE 100: UP 0.5% at 10,233.59
- Paris CAC 40: DOWN 0.3% at 8,304.05
- Frankfurt DAX: FLAT at 25,286.23
- Tokyo Nikkei 225: DOWN 0.4% at 54,110.50
- Hong Kong Hang Seng: DOWN 0.3% at 26,923.62
- Shanghai Composite: DOWN 0.3% at 4,112.60
- New York Dow: DOWN 0.1% at 49,149.63
Currency movements:
- Euro/dollar: DOWN at $1.1636 from $1.1647
- Pound/dollar: DOWN at $1.3424 from $1.3433
- Dollar/yen: DOWN at 158.46 yen from 158.56 yen
- Euro/pound: UP at 86.71 pence from 86.68 pence
