Oil slips below $90 as Iran hopes lift global shares
Brent fell below $90 briefly as traders weighed signs of possible de-escalation against uncertainty over negotiations and upcoming US inflation data.
Key takeaways
- Brent futures briefly fell below $90 a barrel for the first time since August.
- The STOXX 600 rose 0.5% as lower oil prices eased some inflation concerns.
- The VIX fell to 19.9 after reaching 28.2 last week, according to Dünya.
Oil prices fell more than 2% on Tuesday, with Brent futures briefly dropping below $90 a barrel for the first time since August. Global shares rose as investors reacted to hopes of easing tensions between the United States and Iran.
US President Donald Trump said the conflict could end “fairly soon,” and Reuters reported that he planned to hold off on new military strikes. The comments helped fuel expectations of possible peace talks, though negotiations remain uncertain.
The pan-European STOXX 600 gained 0.5%, while South Korea’s KOSPI rose 4.4% and Japan’s Nikkei added 2.9%, Reuters reported. According to Dünya, the VIX, which measures expected swings in the S&P 500, fell to 19.9 on Monday from 28.2 last week.
ING strategists said expectations of de-escalation and signs that regional oil flows were recovering had reduced the risk premium in crude prices. But they warned that uncertainty around negotiations and risks to infrastructure could keep oil sensitive to Middle East developments.
Fereidun Fesharaki, chairman of energy consultancy FGE, told CNBC he saw no prospect of a US-Iran peace deal, citing differences over nuclear material and the Strait of Hormuz. Investors were also watching US inflation data due Tuesday for clues about the interest-rate outlook.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
