On Thursday, U.S. oil prices fluctuated, with Brent crude rising 0.5% to $93.29 per barrel and West Texas Intermediate (WTI) slipping 0.1% to $86.05 per barrel. President Trump's remarks on Truth Social indicated a lack of urgency for a deal with Iran, stating, "We don't need a deal with Iran.
Those days have long since passed." This sentiment follows a recent decline in WTI prices, which have dropped about 16% in November. Trump's earlier comments suggested that military action against Iran was unlikely, which had initially eased fears of supply disruptions.
However, analysts like John Kilduff from Again Capital caution that the market may have overestimated the likelihood of a resolution to the conflict. Kilduff noted that renewed doubts about negotiations could elevate the security premium on oil prices.
Additionally, Andy Lipow, president of Lipow Oil Associates, highlighted that both the U.S. and Iran maintain firm negotiating positions, with Iran seeking an end to sanctions and the U.S. demanding the dismantling of Iran's nuclear capabilities.
The ongoing tensions and Trump's assertion of U.S. control over the Strait of Hormuz could lead to increased Iranian aggression, potentially resulting in further supply disruptions and higher oil prices