US crude oil falls below $100 per barrel after Trump says Iran talks in final stages
US crude oil futures fell below $100 per barrel on Wednesday after President Donald Trump said negotiations with Iran were entering their final stages. West Texas Intermediate closed lower while Brent eased to $99.82. Traders began pricing out the war-risk premium that had built up over the past three months, though Trump kept up the warning rhetoric.
US crude oil futures for June delivery slipped to about $98.40 per barrel in Wednesday trading, falling below the psychologically important $100 threshold. Brent crude settled at $99.82. The drop followed President Trump's remarks at the White House that negotiations with Iran were in their final stages.
Independent energy analysts quoted by CNBC estimate that the war-risk premium added to oil prices over the past three months ranges between $10 and $12 per barrel. Unwinding that premium has triggered relief rallies in global insurance, logistics and airline shares. US commercial crude inventories also fell by 7.9 million barrels in the same week, indicating that the underlying supply balance remains tight.
Trump simultaneously kept up warning rhetoric, saying 'if we don't get the right answer, things will happen very fast.' OPEC+ delegates said an output adjustment is difficult while more than 160 tankers wait at the Strait of Hormuz. Markets will watch Friday's diplomatic round closely.
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