On Thursday, West Texas Intermediate futures fell 3.5% to $92.64 per barrel, while Brent futures decreased over 3% to $94.78 per barrel. This decline was influenced by Trump's indication that the ceasefire with Iran remains intact despite ongoing clashes, as reported by unnamed U.S. officials to The Wall Street Journal.
Trump expressed a preference for diplomatic solutions but warned of consequences if Iran harms American troops. The ceasefire's stability is uncertain, particularly after Iranian media reported a halt in negotiations with the U.S. due to Israel's military actions in Lebanon. The situation is further complicated by Hezbollah's involvement, which operates independently of the Lebanese government.
Additionally, Trump faces increasing pressure from Congress, where a resolution was passed urging him to withdraw U.S. forces or seek congressional approval for continued military action. This resolution, however, still requires Senate approval and is likely to be vetoed by Trump.
The overall geopolitical tensions and the potential for conflict in the region could significantly impact oil prices and market dynamics