NEW YORK: Oil prices settled lower on Thursday after US President Donald Trump cancelled plans to strike Iran within hours, a move that raised expectations for a deal to end more than three months of war.
Brent futures fell USD2.72, or 2.9 percent, to settle at USD90.38 a barrel. US West Texas Intermediate (WTI) crude futures fell USD2.32, or 2.6 percent, to settle at USD87.71 a barrel.
Trump in a social media post said he called off planned strikes on Iran because discussions have advanced to the highest levels of Iran’s leadership and a broad coalition of regional powers. He did not share details of the final points he said were approved by the coalition.
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Iran’s semi-official Fars news agency reported that Tehran had not approved the text of any agreement. Trump has claimed multiple times that a deal with Iran is imminent, only to issue threats again when Tehran does not agree to his demands.
Earlier on Thursday, Trump had threatened to hit Iran “very hard”. Still, Iranian sources and Western officials had said indirect talks for a preliminary peace deal had intensified. On Wednesday, Iran announced the closure of the Strait of Hormuz, including for oil tankers and commercial ships, saying any vessel attempting to pass through would come under fire.